Annual Report 2011

Transcription

Annual Report 2011

Editorial Information
2011 Annual Report
Freudenberg Group
PUBLISHED BY:
Freudenberg & Co.
Kommanditgesellschaft
69465 Weinheim, Germany
www.freudenberg.com
DESIGN:
Struwe & Partner, Düsseldorf, Germany
PHOTOS:
Freudenberg Group
avenue images
Deutsches Herzzentrum Berlin, Germany
Hans D. Beyer, Berlin, Germany
David Knight, Boyle, Ireland
Peter Kraft, Mühltal, Germany
Ralf Nikolai, Hennigsdorf, Germany
Gerald Schilling, Ketsch, Germany
PRODUCTION:
Druckhaus Diesbach, Weinheim, Germany
www.freudenberg.com
Freudenberg is at home in many markets and applications all over the world – with 16
Business Groups in 58 countries, and a presence that goes back more than 160 years.
As a supplier and development partner, the Group uses its wealth of technological
expertise to create tailor-made solutions for its customers.
Freudenberg 2011 Annual Report
PROJECT TEAM:
Corporate Communications:
Cornelia Buchta-Noack
Andreas Baldauf
Katrin Jacobi
Group Accounting and Controlling:
Frank Reuther
Sabrina Luckart
Anja Killian
Martina Lorenz
Seals, vibration control components, filters, nonwovens, surface treatment products,
medical device components, mechatronic products, release agents, specialty lubricants,
household products, software solutions and IT services – Freudenberg products are often
invisible and always indispensible – in the automotive industry, the mechanical and
plant engineering sector, the consumer business, the textile and apparel industry, and
the key future markets of medical technology, the oil and gas industry, civil aviation,
rail and commercial vehicles, renewable energies and filtration.
We have pleasure in presenting some examples in this Annual Report.
2011 Annual Report
Freudenberg Group
PUBLISHED BY:
Freudenberg & Co.
www.freudenberg.com
DESIGN:
PHOTOS:
Freudenberg Group
avenue images
PRODUCTION:
www.freudenberg.com
PROJECT TEAM:
Andreas Baldauf
Katrin Jacobi
Frank Reuther
Sabrina Luckart
Anja Killian
Martina Lorenz
Highlights
Freudenberg group 1)
Freudenberg Group
20072008200920102011
Sales [E million]
Germany
EU (excluding Germany)
Other European countries
North America
South/Central America
Asia
Africa/Australia
Total sales
1,325
1,275
961
1,195
1,370
1,839
1,768
1,440
1,639
1,754
271
235
186
236
277
1,164
953
810
1,132
1,160
217269232280348
431461483877962
94
89
89
122
136
5,3415,0504,2015,4816,007
Consolidated profit or loss
Cash flow from operating activities
Cash flow from investing activities
Depreciation and amortization
Balance sheet total
Equity
Personnel expenses
275
176
-250
322
358
407
393
456
468
382
- 319
- 384
-195
- 270
- 264
256
272
302
255
248
4,628
4,861
4,688
5,398
5,734
2,1402,2782,0872,5602,841
1,5921,5341,4811,6061,704
Workforce (as at Dec. 31)
Workforce (annual average)
Business Areas
34,330
35,060
32,738
33,569
32,142
31,616
34,319
34,200
37,031
36,101
20072008200920102011
Sales [E million]
Seals and Vibration Control Technology
Nonwovens
Household Products
Specialties and Others
3,008
2,846
2,226
3,112
3,464
1,034
997
911
1,079
1,145
650656627677687
927
809
688
890
998
Nonwovens
Household Products
22,136
20,454
20,757
22,273
24,150
5,5505,4555,0105,0205,085
2,3482,3812,3092,3473,082
4,296
4,448
4,066
4,679
4,714
1)
T he figures include all companies in which Freudenberg & Co. owns directly or indirectly 50 % or more of the capital.
Shareholdings of 50 % are consolidated to half the amount, shareholdings over 50 % in full.
Parent Company Freudenberg & Co.
Seals and Vibration Control
Technology Business Area
Nonwovens
Business Area
Household Products
Business Area
Business Area
Business Group
Freudenberg Sealing
Technologies
Business Group
Freudenberg
Nonwovens
Business Group
Freudenberg
Household Products
Business Group
Freudenberg Chemical Specialities
NOK-Freudenberg Group China
Freudenberg Politex
Nonwovens
Freudenberg Oil & Gas
Vibracoustic
Freudenberg Schwab*
Freudenberg Filtration
Technologies
Freudenberg NOK Mechatronics
Freudenberg IT
Freudenberg New Technologies
EagleBurgmann
Division
Freudenberg Service Support
Dichtomatik
Freudenberg Real Estate Management
Helix Medical
* Since January 1, 2012 Freudenberg Schwab Vibration Control
Freudenberg is a family-owned group of companies active
on the global stage. Its 16 Business Groups operate on various markets and in various sectors of industry.
Freudenberg offers its customers in the automotive, mechanical and plant engineering, textile and clothing, construction,
mining and heavy industry, energy, chemical, oil and gas
sectors tailor-made, innovative technological products and
services. Customer groupings also include companies in the
medical technology, civil aviation, rail vehicles and semiconductor sectors.
conduct rank among the basic values of the company
which was founded over 160 years ago. Freudenberg is
committed to partnerships with customers, and believes
in a long-term orientation, financial solidity and the excellence of over 37,000 associates in 58 countries around
the globe.
Freudenberg develops software solutions and IT services
primarily for small- and medium-sized enterprises. Final
users enjoy the benefits of Freudenberg’s state-of- the-art
household products marketed under the vileda ®, O’Cedar®,
Wettex®, Gala ® and SWASH ® brands.
Freudenberg sees itself as an enterprising corporation.
Operative business is the responsibility of stand-alone
companies whose management conducts business auto
nomously. The individual companies belong to one of several Business Groups. The executive bodies of the parent
company Freudenberg & Co. Kommanditgesellschaft – the
Management Board, the Board of Partners, and the Partners’ Meeting – have responsibilities similar to those of the
Executive Board, the Supervisory Board and the Shareholders Meeting in German corporations. The parent company’s
Corporate Functions control, coordinate and monitor the
activities of the Freudenberg Group and provide advice
and support to Business Groups. The Management Board
members are jointly responsible for the leadership of the
Freudenberg Group.
Creativity, quality, diversity and innovative strength are
the company’s cornerstones. Reliability and responsible
Freudenberg is a family company. It is owned by some
320 heirs to the founding father Carl Johann Freudenberg.
Freudenberg develops and manufactures seals, vibration
control technology components, filters, nonwovens, surface
treatment products, release agents and specialty lubricants,
medical technology, and mechatronic products.
Highlights
Freudenberg group 1)
Freudenberg Group
20072008200920102011
Sales [E million]
Germany
EU (excluding Germany)
Other European countries
North America
South/Central America
Asia
Africa/Australia
Total sales
1,325
1,275
961
1,195
1,370
1,839
1,768
1,440
1,639
1,754
271
235
186
236
277
1,164
953
810
1,132
1,160
217269232280348
431461483877962
94
89
89
122
136
5,3415,0504,2015,4816,007
Consolidated profit or loss
Depreciation and amortization
Balance sheet total
Equity
Personnel expenses
275
176
-250
322
358
407
393
456
468
382
- 319
- 384
-195
- 270
- 264
256
272
302
255
248
4,628
4,861
4,688
5,398
5,734
2,1402,2782,0872,5602,841
1,5921,5341,4811,6061,704
Workforce (annual average)
Business Areas
34,330
35,060
32,738
33,569
32,142
31,616
34,319
34,200
37,031
36,101
20072008200920102011
Sales [E million]
Nonwovens
Household Products
3,008
2,846
2,226
3,112
3,464
1,034
997
911
1,079
1,145
650656627677687
927
809
688
890
998
Nonwovens
Household Products
22,136
20,454
20,757
22,273
24,150
5,5505,4555,0105,0205,085
2,3482,3812,3092,3473,082
4,296
4,448
4,066
4,679
4,714
1)
T he figures include all companies in which Freudenberg & Co. owns directly or indirectly 50 % or more of the capital.
Shareholdings of 50 % are consolidated to half the amount, shareholdings over 50 % in full.
Parent Company Freudenberg & Co.
Seals and Vibration Control
Technology Business Area
Nonwovens
Business Area
Household Products
Business Area
Business Area
Business Group
Freudenberg Sealing
Technologies
Business Group
Freudenberg
Nonwovens
Business Group
Freudenberg
Household Products
Business Group
Freudenberg Politex
Nonwovens
Vibracoustic
Freudenberg Schwab*
Freudenberg Filtration
Technologies
Freudenberg IT
EagleBurgmann
Division
Dichtomatik
Helix Medical
* Since January 1, 2012 Freudenberg Schwab Vibration Control
Freudenberg is a family-owned group of companies active
on the global stage. Its 16 Business Groups operate on various markets and in various sectors of industry.
Freudenberg offers its customers in the automotive, mechanical and plant engineering, textile and clothing, construction,
mining and heavy industry, energy, chemical, oil and gas
sectors tailor-made, innovative technological products and
services. Customer groupings also include companies in the
medical technology, civil aviation, rail vehicles and semiconductor sectors.
conduct rank among the basic values of the company
which was founded over 160 years ago. Freudenberg is
committed to partnerships with customers, and believes
in a long-term orientation, financial solidity and the excellence of over 37,000 associates in 58 countries around
the globe.
Freudenberg develops software solutions and IT services
primarily for small- and medium-sized enterprises. Final
users enjoy the benefits of Freudenberg’s state-of- the-art
household products marketed under the vileda ®, O’Cedar®,
Wettex®, Gala ® and SWASH ® brands.
Freudenberg sees itself as an enterprising corporation.
Operative business is the responsibility of stand-alone
companies whose management conducts business auto
nomously. The individual companies belong to one of several Business Groups. The executive bodies of the parent
company Freudenberg & Co. Kommanditgesellschaft – the
Management Board, the Board of Partners, and the Partners’ Meeting – have responsibilities similar to those of the
Executive Board, the Supervisory Board and the Shareholders Meeting in German corporations. The parent company’s
Corporate Functions control, coordinate and monitor the
activities of the Freudenberg Group and provide advice
and support to Business Groups. The Management Board
members are jointly responsible for the leadership of the
Freudenberg Group.
Creativity, quality, diversity and innovative strength are
the company’s cornerstones. Reliability and responsible
Freudenberg is a family company. It is owned by some
320 heirs to the founding father Carl Johann Freudenberg.
Freudenberg develops and manufactures seals, vibration
control technology components, filters, nonwovens, surface
treatment products, release agents and specialty lubricants,
medical technology, and mechatronic products.
Contents
2
3
4
6
Board of Partners, Management Board
Management of the Business Groups and Divisions
Report of the Board of Partners
Foreword of the Management Board
10
14
14
20
54
55
56
62
62
67
Management Report of the Freudenberg Group
Business Developments and General Economic Conditions
Sales and Earnings Position of the Group
Financial Position and Net Assets of the Group
Review of Operations by Business Area
Research and Development
Human Resources
Responsible Conduct
Post-reporting Date Events
Risks and Opportunities
Outlook
72
73
74
75
76
77
Financial Report – Consolidated Financial Statements
Consolidated Statement of Financial Position
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
123
Shareholdings of the Freudenberg Group
135
Independent Auditor‘s Report
2
Company Boards
BOARD OF PARTNERS*
MANAGEMENT BOARD
Dr. Wolfram Freudenberg, Stuttgart
Chairman of the Board of Partners
Entrepreneur
Dr. Dr. Peter Bettermann, Weinheim
Speaker
General Partner
Dr. Michael Rogowski, Heidenheim
Deputy Chairman of the Board of Partners
Chairman of the Foundation Council
of Hanns-Voith-Stiftung
Dr. Ralf Krieger, St. Leon-Rot
(from October 1, 2011)
Dr. Maria Freudenberg-Beetz, Weinheim
Second Deputy Chairman of the
Board of Partners
Biologist
Dr. Mohsen Sohi, Frankfurt am Main
General Partner
Martin Freudenberg, Heidelberg
Entrepreneur
Christoph Mosmann, Mannheim
General Partner
Dr. Martin Stark, Weinheim
General Partner
Dr. Mathias Kammüller, Ditzingen
Managing Partner
TRUMPF GmbH + Co. KG
Prof. Dr. Dieter Kurz, Oberkochen
Former President and CEO
of Carl Zeiss AG
Walter Schildhauer, Stuttgart
Managing Partner
Qn-Yachts GmbH
Dr. Christoph Schücking, Frankfurt am Main
Attorney and Notary Public
Mathias Thielen, Prague, Czech Republic
Chief Financial Officer
GE Money Bank AG
Dr. Emanuel Towfigh, New York, USA
Senior Research Fellow at Max-Planck-Institut and
Attorney
Werner Wenning, Leverkusen
Chairman of the Supervisory Board of E.ON AG
Martin Wentzler, Großhesselohe
Attorney
* as at December 31, 2011
3
MANAGEMENT OF THE BUSINESS GROUPS AND DIVISIONS*
Management
Business Group
Claus Möhlenkamp (Speaker), Dr. Arman Barimani (CTO),
Ludger Neuwinger-Heimes (CFO)
Freudenberg Sealing Technologies
Yasuhiro Shimokawa (CEO), Dr. Erek Speckert (CEO)
Richard Schmidt (CEO and President), Craig Barnhart (CFO)
Hans-Jürgen Goslar (Chairman), Norbert Schebesta (CFO)
Vibracoustic
Thomas Plingen (CEO), Carsten Storm (CFO)
Freudenberg Schwab
Dr. Stefan Sacré (Chairman), Dr. Walter Steinbach (CTO),
Jochen Strasser (CFO)
EagleBurgmann
Ludger Patt (Chairman), Thomas Herr (CFO),
Thomas Hahn (President Dichtomatik Americas)
Dichtomatik
Dr. Jörg Schneewind (CEO and President), Mike Hawkins (CFO)
Helix Medical
Bruce R. Olson (Chairman), Dr. Frank Heislitz (CTO),
Dr. René Wollert (CFO)
Freudenberg Nonwovens
Richard Shaw (Chairman), Dr. Rocco Marsico (CTO),
Dr. Riccardo Forni (CFO)
Freudenberg Politex Nonwovens
Dr. Jörg Sievert (Chairman), Dr. Andreas Kreuter (CFO)
Freudenberg Filtration Technologies
Dr. Klaus Peter Meier (Chairman), Arndt Miersch (CTO),
Volker Christ (CFO)
Freudenberg Household Products
Hanno D. Wentzler (Chairman), Dr. Jörg Matthias Großmann (CFO)
Bruno Conrath (Speaker), Ludwig Neumann (CTO)
Olaf Heyden (Speaker), Dr. Sebastian Weiss (CFO),
Dieter Kull (COO)
Freudenberg IT
Dr. Jörg Böcking (CEO)
Division
Dr. Ulf Kürschner (CEO), Volker Kübler (CFO)
Martin Obermüller (Speaker), Gerhard Freiwald (CTO),
Gerald Reinisch (CFO), Dr. Dirk Mahler
Freudenberg Real Estate
Management
* as at December 31, 2011
4
Report of the Board of Partners
During the 2011 financial year, the Management Board and the Board of Partners held regular and detailed
discussions on the progress of the company, its Business Groups and Divisions and major individual business
transactions on the basis of oral and written reports from the Management Board. Business policy was agreed
in consultation between the two bodies and updated where necessary in joint deliberations. In addition, the
Chairman of the Board of Partners discussed current business developments with the members of the Management Board on a regular basis and in a spirit of partnership.
Five meetings of the Board of Partners were held in the 2011 financial year. The global economic and financial
situation and its possible impact on the Freudenberg Group were intensively discussed and reappraised in close
consultation with the Management Board. The Board of Partners and the Management Board again reaffirmed
that the company will continue its profitable growth trajectory on the basis of ethical principles by taking this as
the motto for the senior management conference held mid-2011. In this context, the focus lies on expanding
business in the growth regions – in particular Asia.
The Board of Partners participated in portfolio decisions and numerous other projects to safeguard the future
viability and long-term success of the Group. During the year under review, this related in particular to the
reorganization of the sealing business which was combined to form the new Freudenberg Sealing Technologies
Business Group effective January 1, 2011, and the envisaged 50:50 joint venture between Vibracoustic and the
automotive antivibration business of Trelleborg AB, Trelleborg, Sweden.
Furthermore, the Board of Partners was actively involved in the review of the Group‘s company law structures –
for example, by means of the working group chaired by Dr. Christoph Schücking. The objective is to simplify
structures and to turn Freudenberg Beteiligungs-AG, Weinheim, Germany, into an SE, a European public company, under the roof of Freudenberg & Co. Kommanditgesellschaft, Weinheim, Germany. The Partners‘ Meeting
approved this change in the company‘s structure at the end of June. The employee involvement process that
empowers the employees concerned to participate in these changes was launched in the summer. The process
is proceeding as planned.
In addition, the Board of Partners coordinated extensive liaison with Partners in the form of regional meetings in
various countries.
The Personnel Committee met three times in 2011. The foundations were laid for management succession
following the departure of Dr. Dr. Peter Bettermann as Speaker of the Management Board when he steps down
having reached retirement age in mid-2012. Dr. Mohsen Sohi will take over the post of Management Board
Speaker from July 1, 2012. Dr. Sohi has been a member of the Management Board since May 1, 2010.
Dr. Ralf Krieger was appointed to the Management Board effective October 1, 2011. He was formerly Chief
Operating Officer (COO) in the Freudenberg Sealing Technologies Management Board. Christoph Mosmann
became a General Partner with effect from July 1, 2011. He has been a member of the Management Board
since July 1, 2010.
5
The Audit Committee met twice in the 2011 financial year. Among other topics, it consulted on the further
development of risk management in the Group.
The Consolidated Financial Statements and the Management Report for 2011 were audited by Ernst & Young
GmbH Wirtschaftsprüfungsgesellschaft, Mannheim, Germany, and were approved without reservation.
The Board of Partners approved the Consolidated Financial Statements and the Management Report of the
Freudenberg Group and the annual financial statements of Freudenberg & Co. Kommanditgesellschaft and,
following examination, concurred with the auditor‘s findings.
Prof. Dr. Wilhelm Simson and Prof. Dr. Hans-Christian von Baeyer both stepped down from the Board of
Partners having reached retirement age, and Dr. Ulrich Freudenberg also left the Board of Partners. We would
like to thank them for the positive and constructive cooperation. Martin Freudenberg, Walter Schildhauer and
Werner Wenning were elected to the Board of Partners.
The Board of Partners expresses its thanks to all employees, the Management Board and the Business Group
managing bodies. Their outstanding entrepreneurial dedication, enormous personal commitment and great
professionalism have made a decisive contribution to the Group‘s success.
Weinheim, March 29, 2012
For the Board of Partners
Dr. Wolfram Freudenberg
Chairman
6
Foreword of the Management Board
2011 was the best year to date in Freudenberg‘s long history. This was in part attributable to the good macroeconomic situation in many countries. In addition, the Group continued to derive significant benefits from the
measures initiated during the most recent global economic crisis. Moreover, the Group‘s commitment in growth
regions also paid off, with the booming economies in Asia guaranteeing above-average growth rates. In
contrast, the Group was obliged to cope with substantial increases in the price of materials and compensate
for weak economic conditions in the Mediterranean countries.
Freudenberg reported above-average growth in many areas in the year under review. At €6,006.5 million,
sales clearly surpassed the already high level of 2010 (€5,481.4 million), growing 9.6 percent. Profit from
operations rose by €74.8 million (an increase of 17.4 percent) to €505.4 million. Free cash flow totaled
€118.4 million in the year under review. With an equity ratio of 49.6 percent and liquid funds of €724.0 million, Freudenberg‘s strong balance sheet puts the company in a good position to face the future. All of these
performance indicators represent new records in the long history of Freudenberg which could not have been
achieved without the intensive restructuring undertaken during the 2008/2009 crisis. The Group‘s rating
remains unchanged. Moody‘s rating agency confirmed Freudenberg‘s rating of Baa1 and reaffirmed the outlook as “stable”.
One major organizational change came into effect on January 1, 2011. Freudenberg‘s classic sealing business,
which had previously been conducted on a regional basis by the Freudenberg Seals and Vibration Control
Technology Business Group in Europe and the Freudenberg-NOK General Partnership Business Group in North
and South America, was brought together in the Freudenberg Sealing Technologies Business Group. This is
an important step on the way to a global sealing business. The stand-alone Business Groups Freudenberg
Oil & Gas, Helix Medical and Freudenberg Schwab (since January 1, 2012 Freudenberg Schwab Vibration
Control) were also set up with effect from the beginning of the year; all focus on promising, high-margin market
segments.
The portfolio was actively developed. On the one side, the Group sold its cylinder head and exhaust
system gaskets business for OEMs and the vendor-specific aftermarket to ElringKlinger AG, Dettingen/Erms,
Germany, effective January 1, 2011 as well as the actuator business of Freudenberg NOK Mechatronics to the
partner company Eagle Industry Co. Ltd., Tokyo, Japan, with effect from June 30, 2011. On the other side,
Freudenberg Household Products acquired the shares in 13 companies belonging to the Trade & Investment in
Asia-Pacific (TIA) Group registered in Hong Kong, China, thus expanding its presence on the Asia-Pacific
market. Furthermore, Freudenberg and Trelleborg AB, Trelleborg, Sweden, signed a memorandum of understanding affirming their intention to set up a 50:50 joint venture between Vibracoustic and the automotive
antivibration business of Trelleborg AB. The contract was signed on January 31, 2012. The new company is
conditional upon approval by the relevant bodies, especially the European anti-trust authorities.
7
Our corporate values have been the basis for our success ever since Freudenberg was established in 1849.
Today, they are codified and publically accessible in the form of our Business Principles. Together with 300
senior managers from all over the Freudenberg community, we discussed these principles from the perspective
of profitable growth in an increasingly globalized world at the “DIALOG” management conference which took
place in Weinheim in July. The outcome was a sharper common understanding of our values; numerous
regional events subsequently transferred this understanding to the Group‘s key regions around the world.
We enter 2012 with commitment and optimism. We are nevertheless also aware that the debt and finance
crisis in the eurozone, as well as in other national economies, could place a major burden on the real economy
this year. As a result, growth is likely to weaken and a recession cannot be ruled out. However, we are well
prepared for such an event. Thanks to our early warning system, our broad diversification and our entrepreneurially-oriented business units, we can respond swiftly to changes in the underlying conditions. We will
systematically continue to implement our business policy with its high operational capability and flexibility and
its sound financing. As a supplier and development partner we will persist in our efforts to offer our customers
tailor-made solutions embodying the highest technical competence.
Our corporate success is in no small measure attributable to the motivation and flexibility of our employees
and their identification with our company. Regular surveys have confirmed that loyalty and commitment to their
employer are exceptionally strong among Freudenberg employees. We would like to thank our employees for
that. We also thank our customers and business partners who once again placed their trust in Freudenberg
during the 2011 financial year.
The Management Board
Dr. Dr. Peter Bettermann
Dr. Ralf Krieger
Dr. Mohsen Sohi
Christoph Mosmann
Dr. Martin Stark
8
© Deutsches Herzzentrum Berlin
scaffolene – Nonwovens with
therapeutic properties
The Freudenberg Group has developed a technology platform for applications such as surgery, wound treatment and
regenerative medicine that offers highly innovative solutions addressing many challenges in the medical field: Bioresorbable nonwovens for medical applications.
scaffolene technology is used to produce 3D structures from natural or synthetic biopolymers known as 3D scaffolds.
These nonwovens are manufactured under clean-room conditions in accordance with all the relevant quality standards.
Furthermore, medication, enzymes, growth hormones and other substances can be integrated directly into the fibers
so that these active ingredients are subsequently released in line with clinical requirements for local therapy over a
longer period of time. These products are customer-specific solutions tailored to meet the individual requirements of
companies in the pharmaceutical, biotechnology and medical devices industries.
This patented Freudenberg technology has the potential to create medical products that are extremely attractive for
both patients and doctors. The range of applications is broad. scaffolene nonwovens are, for example, highly flexible,
making them suitable for minimally invasive procedures where surgery is performed via small ports.
9
Our bioresorbable nonwovens open up entirely new therapeutic approaches – and represent a major step forward for doctors and patients.
Dr. Dirk Grafahrend, R&D Manager, Freudenberg New Technologies.
10
Management Report of the Freudenberg Group
In the 2011 financial year, the Freudenberg Group
reported sales of €6,006.5 million (previous year:
€5,481.4 million), representing a year-on-year
increase of €525.1 million or 9.6 percent. The Group
reported a consolidated profit of €358.2 million
(previous year: €321.7 million). At December 31,
2011, the Group‘s workforce totaled 37,031 employees (previous year: 34,319 employees).
BUSINESS DEVELOPMENTS AND
GENERAL ECONOMIC CONDITIONS
Matters of particular significance in the 2011
financial year
The 2011 financial year was marked by strong global
economic growth associated with uncertainty about
future economic developments as a result of the financial crisis and the crisis in the eurozone. Thanks to
high capacity flexibility, Freudenberg was able to
meet customer demand and reported another successful year on the back of the strong growth already
reported for 2010.
The stand-alone Business Groups Freudenberg
Oil & Gas, Helix Medical und Freudenberg Schwab
(since January 1, 2012 Freudenberg Schwab Vibration
Control) were set up effective the beginning of the
year. The Group transferred its cylinder head and
exhaust system gaskets business for automotive OEMs
and the vendor-specific aftermarket to ElringKlinger
AG, Dettingen/Erms, Germany, also with effect from
January 1, 2011. Freudenberg disposed of the actuator business of Freudenberg NOK Mechatronics to
Eagle Industry Co. Ltd., Tokyo, Japan, with effect from
June 30, 2011. In addition, the Group sold its 20 percent share in Unimatec Chemicals Europe GmbH &
Co. KG, Weinheim, Germany, to NOK Europa GmbH,
Weinheim, Germany, effective December 30, 2011.
Freudenberg Nonwovens disposed of its 50 percent
joint venture share in Freudenberg Vitech L.P., Hopkins
ville, USA, to the Japanese partner Japan Vilene
Company Ltd., Tokyo, effective December 31, 2011.
The commitment in growth regions was systematically
expanded in 2011. Freudenberg Household Products
acquired the shares in 13 companies of the Trade &
Investment in Asia-Pacific (TIA) Group registered in
Hong Kong, China, and branches in China, Thailand,
Indonesia, Malaysia and Taiwan, thus significantly
extending its presence on the Asia-Pacific market.
Freudenberg Gala Household Product Pvt. Ltd., Mumbai, India – the joint venture between Freudenberg
Household Products and Gala Brush Limited, India –
opened a new plant in Adas, Gujarat State.
This is the first milestone in strengthening Freudenberg
Household Products‘ presence in India and abroad.
The factory manufactures mechanical household
cleaning products. Merkel NOK-Freudenberg Co. Ltd.,
Taicang, China, set up a new line for the local production of seals in Taicang near Shanghai in cooperation
with the Freudenberg Sealing Technologies Fluid
Technology Lead Center in Schwalmstadt, Germany.
The line manufactures polyurethane (PU) seals for
industrial applications.
Freudenberg also expanded its activities in other areas.
Vibracoustic broadened its global network with a new
plant producing engine mounts and chassis components in Querétaro, Mexico, thus enhancing the efficiency of activities on the North American market still
further. In addition, Freudenberg Politex Nonwovens
built a new spunlaid production line for construction
materials in Nizhniy Novgorod, Russia, scheduled for
commissioning in the first half of 2012.
Furthermore, Vileda Professional, a division of
Freudenberg Household Products, and rothopro
GmbH, Görwihl, Germany, a Rotho Group company,
signed a strategic cooperation agreement relating to
products for the growing waste management sector.
Management Report – Business Developments and General Economic Conditions 11
Freudenberg Household Products also successfully
commissioned a plant in Nizhniy Novgorod.
The new Freudenberg Sealing Technologies plant
was opened in the Berlin Adlershof Science and
Technology Park in October. The relocation from the
Friedrichshain district in Berlin is an important step
towards strengthening Freudenberg‘s presence in the
German capital.
In addition, Freudenberg and Trelleborg AB, Trelleborg, Sweden, signed a memorandum of understanding affirming their intention to set up a 50:50 joint
venture between Vibracoustic and the automotive
antivibration business of Trelleborg AB. The new
company is conditional upon approval by the relevant
bodies, especially the European anti-trust authorities.
Global economic situation
The strong upswing that followed the severe recession
of 2008/2009 initially continued into the 2011 financial year in many regions and market segments. In the
first half of the year, growth rates for gross domestic
product and industrial production were for the most
part significantly higher than the long-term average.
However, the disturbing increase in national debt in
many industrialized nations incurred as a result of the
measures to fight the crisis led to major financing
problems for many governments and growing market
uncertainty. At the same time, the central banks in
some emerging economies were compelled to initiate
contractive measures to counter a worrying rise in
inflation. As a result, the global economy cooled
down quite significantly in the second half of 2011 as
economic momentum returned to normal, in some
cases triggering a strong temporary downturn. Japan,
the world‘s second-largest economy, struggled
severely in 2011. The major natural disaster and
nuclear catastrophe plunged the country back into
recession; the negative impact on the rest of the
world, however, was soon offset. Across all regions
and throughout the year, global gross domestic product in 2011 grew in real terms by an average 3.2 percent compared with the prior year.
With economic growth of 9.2 percent, China was
once again one of the world‘s most dynamic economies. India, too, contributed an impressive 7.6 percent
to growth. South Korea recorded a rise of 3.6 percent. In contrast, Japanese gross domestic product
declined by 0.8 percent. The average growth rate
for the eurozone was 1.5 percent, but the regional
differences remained high. Germany was again the
frontrunner with growth of 3.0 percent. In the USA,
economic momentum of 1.7 percent was well below
expectations. A systematic austerity policy in Brazil
slowed down the gross domestic product growth rate
to 3.1 percent, while Argentina reported 7.5 percent
growth.
The Freudenberg Group reported further gains in key
sales sectors in 2011 on the back of robust prior-year
growth. Global demand for new cars rose as economic conditions improved. Growth rates in premium
segment sales were above average. New registrations
in China for the full year were up by 10.0 percent.
Growth rates in the USA (10.0 percent), Brazil
(3.0 percent) and Germany (9.0 percent) were similarly high. However, the significant downturns in
Spain (-18.0 percent), Italy (-11.0 percent) and the UK
(-4.0 percent) resulted in a 2.6 percent drop in total
registrations for the EU-5 region compared with the
prior year. Registration figures in Japan contracted by
25.0 percent as a result of the recession.
The international mechanical engineering sector
also benefited from the global economic upswing.
Increased capital spending on machinery and equipment resulted in 13.0 percent sales growth. Growth
rates varied from 0.4 percent in Brazil to 17.4 percent
in China.
12
Sales by sectors
[in %]
Energy
and water 4
Chemical 4
Medical and
pharmaceutical 3
Textile and clothing 6
Sales by regions
[%]
Other industry sectors 10
Final users 12
Spare parts
business 7
Construction 6
Mechanical and
plant engineering 15
Automotive
OEMs 33
In the textile and clothing industry, substantial rises
in wage levels and capacity bottlenecks impacted
China‘s position as the leading production location.
At 8.3 percent, growth in textile production was
unusually weak. Apparel manufacturers, on the other
hand, reported 16.0 percent growth. Turkey, Poland
and the Czech Republic won significant market share.
Production in the USA rose by 4.1 percent. Japan also
recorded an increase of 0.9 percent. In contrast,
production in the 27 Member States of the EU
declined by an average 3.8 percent.
Developments in the construction industry in 2011
were very mixed. In China, the industry recorded
growth of 19.6 percent, still on the verge of overheating. In addition to developments in many emerging
economies, several mature industrialized nations,
including Germany (9.8 percent), Sweden (7.6 percent) and the UK (3.7 percent) also recorded significant growth. In contrast, many other regions reported
only weak – or even negative – growth rates.
The international medical technology sector c ontinued
its robust growth trajectory in 2011. Growth rates were
once again generally higher than those recorded in
other sectors of industry.
The electrical and electronics industry continued its
positive trend in 2011, although momentum was
slightly down on the previous year. The same applied
for the chemical industry, which was one of the first
market segments to switch from boom to normal
growth rates.
Raw material prices reflected economic developments
in 2011. Following sharp rises in the first half of the
year, crude oil prices dipped slightly from mid-year.
The annual average price for crude oil was 1.8 percent up on the previous year. There was an almost
steady drop in the euro (EUR)/dollar (USD) exchange
rate in 2011. The annual average exchange rate was
1.40 USD/EUR (previous year: 1.32 USD/EUR).
Africa/Australia 2
Germany 23
Asia 16
South/Central
America 6
EU (excluding
Germany) 29
North America 19
Other European
countries 5
Products and markets
The 2011 financial year was characterized by strong
demand on almost all sales markets. With a share of
33 percent that remained unchanged year-on-year,
the automotive OEM business was once again the
most important customer grouping for Freudenberg.
The Group generated 15 percent of its sales in the
mechanical and plant engineering sector, slightly
below the 16 percent prior-year share. This sector
was therefore the Group‘s second largest customer
grouping. The share of products retailed to final users
accounted for a smaller double-digit share of 12 percent (previous year: 13 percent). Other major sales
sectors were energy and water (four percent), chemical (four percent), textile and clothing (six percent),
construction (six percent) and medical and pharmaceutical (three percent). The share of consolidated
sales attributable to the spare parts sector increased
slightly year-on-year from six to seven percent.
Sales by the Freudenberg Group rose in almost all
regions in the year under review. The regions of
Germany, Other European countries and South/
Central America recorded growth. The share of sales
generated in Germany was 23 percent (previous
year: 22 percent), in Other European countries it
was five percent (previous year: four percent) and in
South/Central America this share was six percent
(previous year: five percent). The EU (excluding
Germany) region generated a 29 percent share of
sales, one percentage point down on the previous
year. The Asia region accounted for a significant
share of consolidated sales (16 percent), on a par
with the previous year. The increase in sales in the
North America region was lower than that achieved
in other regions, but sales in North America never
theless developed positively, accounting for a share
of 19 percent.
Management Report – Business Developments and General Economic Conditions 13
Consolidated group
At year-end 2011, the number of companies in the
Freudenberg Group totaled 483 located in 58 countries. 453 of these companies were included in the
consolidation. 414 companies, including 128
production and 174 sales companies, were fully
consolidated.
Non-controlling interests and joint ventures
Freudenberg holds a non-controlling interest, either
direct or via subsidiaries, in several companies, most
of which are consolidated under the equity method.
The most important non-controlling interests held by
Freudenberg concern the Japanese companies NOK
Corporation and Japan Vilene Company Ltd. (JVC),
both registered in Tokyo, Japan, where Freudenberg
holds an interest of approximately 25 percent in the
former and an interest of approximately 28 percent in
the latter company.
The NOK Group manufactures and supplies sealing
products, flexible printed circuits, roll products for
office equipment and further products such as specialty lubricants. At the reporting date of March 31,
2011, the NOK global headcount totaled 41,210.
Sales by the NOK Group rose 39.7 percent
(€1,258.3 million) year-on-year to €4,428.9 million.
Adjusted for exchange rates, sales increased by
20.3 percent.
The JVC Group manufactures nonwovens for the
clothing, automotive, electrical and consumer goods
industries as well as for applications in the medical
sector and filtration. Production facilities are located
in China, Japan, South Korea, Taiwan, Thailand and
the USA. The JVC Group employed 1,467 associates
as at March 31, 2011. Sales rose by €57.7 million
(16.5 percent) year-on-year to €408.1 million.
Adjusted for changes in currency parities, sales rose
by 0.3 percent.
The two Japanese associated companies are consolidated on the basis of the interim financial statements
as at December 31, 2011.
The proven partnership between Freudenberg and
these two Japanese companies has lasted more than
50 years. Numerous activities in the USA, Asia (China
and India) and in Europe have been jointly established during the decades-long partnership.
Japan was hit by a major earthquake and tsunami in
March 2011. Associates of NOK Corporation were
affected by the disaster. Some lost their homes, other
had to repair serious damage to their houses. As a
sign of deep solidarity and close partnership,
Freudenberg associates and the company donated
some €438,000 to help the NOK employees.
14
Sales development
[E million]
Freudenberg Group
6,000
5,341
5,000
5,481
5,050
6,007
4,201
4,000
2010
2011
3,000
Sales [E million]
5,481.46,006.5
2,000
Consolidated profit [E million]
321.7358.2
Profit from operations [E million]
Workforce
430.6505.4
1,000
34,31937,031
2007
2008
2009
2010
2011
SALES AND EARNINGS POSITION
OF THE GROUP
FINANCIAL POSITION AND NET ASSETS
OF THE GROUP
Sales and earnings reach all-time highs
Financing strategy
In the year under review, the Freudenberg Group
reported sales of €6,006.5 million, an all-time high.
Sales were €525.1 million or 9.6 percent higher than
the prior year. Adjusted for the effects of acquisitions
and disinvestments to the amount of €15.2 million and
exchange rate conversion effects, sales were 10.9 percent higher than the prior year. Sales increased in
almost all Business Areas.
The parent company Freudenberg & Co. Kommanditgesellschaft (Freudenberg & Co.), Weinheim, Germany, is responsible for all the financing activities of
the Freudenberg Group and also operates the cash
management system for the entire Group. The Group
companies obtain the financing they require via cash
pools or loans provided by the internal financing
companies or, in some countries, in the form of bank
loans guaranteed by Freudenberg & Co.
There was a disproportionately high rise of €74.8 million in profit from operations, which increased to
€505.4 million. This was chiefly attributable to the
increase in contribution margins as a result of higher
sales. Higher material expenses impacted negatively
on profit, although a large share of these expenses
was passed on. Starting from a low level, administration expenses and selling expenses rose as a result of
strong growth in business. Consolidated profit
improved by €36.5 million to €358.2 million.
Freudenberg & Co. does not expose itself to financial
risks through speculation with derivative financial
instruments but uses such instruments only for hedging,
and therefore reducing, risks in connection with
underlying transactions. Future transactions are only
hedged if there is a high probability of occurrence.
The global economic and financial crisis continues to
generate strong turbulence on credit and capital
markets. This has a direct effect on financing costs and
options for industrial companies. The Freudenberg
Group is in a good position to tackle these challenges
thanks to its conservative finance policy. Liquidity
measures include high reserves of liquid funds and
committed credit lines with core banks.
Management Report – Sales and Earnings Position of the Group / Financial Position and Net Assets of the Group 15
Cash flow from operating activities for the 2011
financial year amounted to €381.9 million, corres
ponding to a year-on-year decline of €86.2 million.
In particular locked up working capital as a result of
growth masked the positive effect due to higher profit.
The outflow of funds from investing activities
amounted to €263.5 million and is therefore only
slightly lower than the previous year (€269.8 million).
Major investing activities focused on the Freudenberg
Sealing Technologies, EagleBurgmann and
Vibracoustic Business Groups.
Cash flow from financing activities
Cash flow from financing activities in the 2011 financial year was negative at €-49.2 million (previous
year: €-73.5 million). Slightly lower payments to
Partners and non-controlling interests were offset by
the higher cash inflow from the uptake of financial
debt.
The Freudenberg Group can meet all of its payment
obligations at any time.
16
Assets, equity and liabilities
Dec. 31, 2010
[€ million][%]
Dec. 31, 2011
[€ million][%]
ASSETS
Intangible assets, tangible assets and
investment properties
2,168.3
40.2
2,231.5
38.9
Other non-current assets
886.0
16.4
924.1
16.1
Non-current assets
3,054.3
56.6
3,155.6
55.0
Inventories and current receivables
1,628.0
30.1
1,833.2
31.9
Other current assets
664.3
12.3
738.4
12.9
Current assets
2,292.3
42.4
2,571.6
44.9
Non-current assets held for sale
and disposal groups
51.7
1.0
7.1
0.1
5,398.3100.0
5,734.3100.0
EQUITY AND LIABILITIES
Equity
2,560.147.4
2,841.449.6
Long-term provisions
514.1
9.5
509.7
8.9
Other non-current liabilities
860.1
16.0
894.6
15.6
Non-current liabilities
1,374.2
25.5
1,404.3
24.5
Current liabilities
1,450.7
26.9
1,488.2
25.9
Liabilities in connection with non-current
assets held for sale and disposal groups
13.3
0.2
0.4
0.0
5,398.3100.0
5,734.3100.0
Change
[%]
2.9
4.3
3.3
12.6
11.2
12.2
- 86.3
6.2
11.0
- 0.9
4.0
2.2
2.6
- 97.0
6.2
Management Report – Financial Position and Net Assets of the Group 17
At €5,734.3 million (previous year: €5,398.3 million), the total assets of the Freudenberg Group
increased by €336.0 million.
The rise in the balance sheet total is chiefly attributable to the increase in current assets, mainly as a
result of higher inventories and current receivables
due to the rise in sales.
The €76.4 million rise in securities and cash at bank
and in hand is also reflected by the increase in other
current assets. This had an impact on net debt which
declined by €42.8 million to €259.0 million.
Non-current assets rose by €101.3 million to
€3,155.6 million. Adjusted for exchange rate
effects and changes in the consolidation, however,
non-current assets remained at the prior-year level.
The equity ratio rose to 49.6 percent (previous year:
47.4 percent). This was chiefly attributable to the
positive result and exchange rate developments.
Dec. 31, 2010 Dec. 31, 2011 Change
[€ million][€ million][%]
Securities and
cash at bank
and in hand
647.6
724.0
11.8
Financial debt
Net debt
949.4
301.8
983.0
259.0
3.5
-14.2
18
Safe landfall for offshore power
Marine cable applications pose a big challenge because salt water affects
the swelling properties of nonwovens. We have come up with a solution.
Dr. Matthias Schuster, Business Field Manager Cable and Electro Europe, Freudenberg Nonwovens.
19
The wind blows across the sea, strong and unceasing, driving giant turbines that generate thousands of megawatts of
electricity. Getting this power from offshore wind farms to households is a major challenge. Many kilometers of offshore
and onshore cables must be laid. Special nonwovens from Freudenberg are used for protecting and fitting out these
cables.
Equipping underground energy and data cables is one of the Group’s classic fields of application. Freudenberg
nonwovens serve two purposes: On the one hand, they perform an important function in the protective sleeve, which
is made of metal covers fixed by extremely stable and tear-resistant nonwovens.
On the other hand, the nonwovens are used for waterproofing in the cable core. If the cable were to tear, the swelling
nonwoven fills the surrounding hollow space and prevents moisture from spreading. In the past, this type of special
nonwoven could only be used in onshore applications. Now, though, developers at Freudenberg have found a way to
use these swelling nonwovens for marine cables as well. Freudenberg products feature in major offshore projects such
as the London Array wind farm off the UK’s east coast and the Baltic 2 wind farm in the Baltic Sea.
20
20102011
REVIEW OF OPERATIONS BY BUSINESS AREA
The four Business Areas of the Freudenberg Group –
Seals and Vibration Control Technology, Nonwovens,
Household Products, and Specialties and Others –
focus on long-term, sustainable and profitable growth.
The product portfolio is balanced, broadly diversified
and oriented to future markets as well as global
megatrends. Our success is based on global cooperation within the Group, the exchange of know-how and
strong local roots. All this gives us an in-depth understanding of our customers‘ needs and means we can
harness our high technical competence and enormous
innovative strength to constantly improve our products,
thus making an important contribution to helping our
customers solve the challenges they face.
Business Area
In the 2011 financial year, the Seals and Vibration
Control Technology Area comprised eight Business
Groups: Freudenberg Sealing Technologies,
NOK-Freudenberg Group China, Freudenberg
Oil & Gas, Vibracoustic, Freudenberg Schwab,
EagleBurgmann, Dichtomatik and Helix Medical.
With effect from 2012, the Freudenberg Schwab
Business Group expanded its portfolio and now
operates under the name of Freudenberg Schwab
Vibration Control.
Roughly three quarters of sales in this Business
Group in 2011 were generated by the automotive
industry and the mechanical and plant engineering
industry. These sectors – like other customer sectors –
developed well. Consequently, sales in this Business
Area rose to €3,463.6 million (previous year:
€3,112.0 million). The headcount at year-end rose
to 24,150 (previous year: 22,273).
Sales [E million]
1,681.11,667.5
Workforce
12,33612,634
The Technology Specialist Freudenberg Sealing
Technologies is a supplier, development and service
partner for worldwide customers in the automotive
industry, civil aviation, mechanical engineering,
shipbuilding, food and pharmaceuticals, agricultural
and construction machinery, and many other sectors.
Based on the Simmerring®, which was developed by
Freudenberg in 1929, Freudenberg Sealing Technol
ogies has built up a broad range of seals. Success is
based on the in-depth knowledge of processes,
innovative development methods and advanced
materials – regardless of whether the product is a
customized solution or a complete sealing package
to meet complex specifications. A global network of
production and sales companies brings Freudenberg
Sealing Technologies close to its customers in 32
different market segments. Together with its longstanding partner NOK Corporation, Freudenberg
Sealing Technologies is expanding its customer-
oriented competence further, above all in the growth
markets of China, India and Brazil, as well as in
North America.
Products and services
Simmerrings, diaphragms, high-precision molded
parts, bellows, dust boots, hydraulic accumulators,
O-rings, seals for hydraulic and pneumatic
applications, frame gaskets, silicone seals, shock
Management Report – Review of Operations by Business Area 21
absorber seals, valve stem seals and various special
seals; sealing packages for engines, gearboxes,
brakes, axles and steering systems; rubber, plastic
and PTFE components for suspensions; special seals
for electrical and fuel systems; sealing solutions
for special applications, e.g. the process and food
industries and heavy industry, and for the renewable
energy sector such as wind plants or solar tech
nology.
Production locations
Austria, Brazil, Canada, Czech Republic, Estonia,
France, Germany, Hungary, India, Italy, Mexico,
Spain, Turkey, UK, USA
Freudenberg Sealing Technologies GmbH & Co. KG
69465 Weinheim | Germany
Phone: +49 (0) 6201 80-6666
Fax:
+49 (0) 6201 88-6666
E-mail:[email protected]
www.fst.com
With effect from January 1, 2011, Freudenberg
Sealing Technologies combines the former separate
business operations in Europe and America into one
management organization. Sales and earnings in the
Business Group in 2011 were very satisfactory, all
regions benefited from the strong rise in demand from
customers in the various sectors. Allowing for the
spin-off of the oil and gas, medical, Vibracoustic,
Dichtomatik and semiconductor activities in America,
the Business Group reported sales of €1,667.5 million
(previous year before spin-off: €1,681.1 million).
On a like-for-like basis, sales rose by 9.8 percent.
The headcount at year end 2011 was 12,634, up on
the prior-year level of 12,336.
In the automotive sector, Freudenberg Sealing
Technologies benefited from growth among auto
makers and major suppliers in Europe and more
particularly the USA, and outperformed the market.
Sales also grew significantly in the mechanical
engineering industry and other sectors such as civil
aviation and heavy industry. The rise in raw material
prices was at least partly offset by price increases in
2011.
Freudenberg Sealing Technologies introduced in-depth
customer segmentation right down to application level
with a view to providing customers with the optimum
service and addressing their very specific individual
needs. Sealing experts who offer customers profound
application knowledge, tailor-made consulting and
access to Freudenberg Sealing Technologies‘ unique
broad range of technologically mature products work
for the global sales channels of Automotive Sealing,
Simrit ®, Process Seals, Merkel and Corteco®.
In order to move further forward with specialization
and concentration on sealing technology, the industrial vibration control technology division was spun off
effective January 1, 2012 and is now managed by the
Freudenberg Schwab Vibration Control Business
Group.
In 2011, very good progress at all levels was made
in combining the activities in Europe and the USA into
one management organization. Customers are
already benefiting to a high degree from the close
dialog and the standardization of technologies and
processes.
Energy-saving sealing concepts such as LESS (Low
Emission Sealing Solutions), where low-friction seals
manufactured from special materials play an important role, were developed further. One of the highlights at Hannover Messe 2011, the world‘s largest
industrial trade show, was innovations made of poly
urethane such as “Clip & Seal” developed for a wind
turbine manufacturer in China, which offer significant
benefits to customers in the mechanical and plant
engineering industry. This sealing system features
several seal profiles precisely tailored to fit into each
other. The modular concept allows for high variability
in sealing dimensions.
22
[before pro-rata shareholding]
20102011
A new method to produce the steel rings used in
rubber-metal seals developed in Weinheim received
several awards. These rings are no longer stamped,
but manufactured by means of an innovative laser
welding process. This reduces steel consumption by
up to 70 percent. The new technology has been used
to produce Simmerrings in Weinheim since spring
2011 and is gradually being phased in for other
products and at other sites.
Freudenberg Sealing Technologies commissioned a
new state-of-the-art factory in Berlin-Adlershof in fall
2011. Some 200 associates manufacture a range of
products including axle boots made of thermoplastic
elastomers for drive shafts in cars and machinery as
well as sealing bellows for use in chassis and steering
mechanisms. €20 million was invested in the new
factory.
For 2012, Freudenberg Sealing Technologies is planning further growth in sales and earnings. Investment
will focus in particular on the BRIC countries, i.e.
Brazil, Russia, India and China.
Sales [E million]
221.7228.9
Workforce
1,9052,139
with locally-produced and imported seal and vibration control technology products.
The joint venture supplies numerous European, US,
Japanese and Chinese customers in the automotive
and general industry sectors in China. In cooperation
with the partners NOK Corporation and Freudenberg
Sealing Technologies, the locally-manufactured
product range is continuously expanded in line with
market requirements. Market success is based on
those factors which also account for the success of
the Freudenberg/NOK Corporation network in other
regions, namely technological leadership and quality.
Production and sale of seals for the automotive
industry such as Simmerrings, valve stem seals, shock
absorbers, steering column seals, drivetrain seals,
bellows, dust caps, O-rings, frame gaskets, membranes and torsional vibration dampers. The product
range also includes seals for general mechanical
engineering applications such as hydraulic and
pneumatic seals or seals for washing machines as
well as vibration control elements for the electronics
and consumer goods industry which are either produced in China or imported from Europe, North
America or Japan.
Locations
China, Hong Kong
Suite 14 B to H
International Ocean Shipping Building
720 Pudong Avenue
Shanghai 200120 | P.R. of China
Phone: +86 21 5036-6900
Fax: +86 21 5036-6307
E-mail: [email protected]
www.nfgc.com.cn
NOK-Freudenberg Group China is an equal-share
joint venture between NOK Corporation and
Freudenberg serving the high-growth Chinese market
In 2011, the NOK-Freudenberg Group China joint
venture again grew sales, this time from €221.7 million to €228.9 million (3.2 percent) despite a marked
cooling-off of the Chinese economy as a result of
the anti-inflationary measures introduced by the
Chinese government. Sales are accounted for in the
Freudenberg consolidated financial statements on a
pro-rata basis (i.e. a share of 50 percent). The headcount at year-end also rose, increasing to 2,139
(previous year: 1,905) – primarily through the acquisition of the shares of NOK (Wuxi) Seal Products Co.,
Ltd., Wuxi, China, formerly wholly-owned by NOK
Corporation, with its workforce of 180. 1,070 associates are included in the Freudenberg consolidation in
line with the 50 percent shareholding.
NOK-Freudenberg Group China benefited from
continued growth in both the automotive industry and
the general industry sector. There was only slight
positive growth in the Chinese automotive industry as
key government sales incentive measures expired at
the end of 2010. There was a very positive trend in
orders from the automotive sector received by
NOK-Freudenberg Group China towards the end of
the year – in part attributable to new market share
won with European customers. Sales in general industry segments developed extremely well in the first half
of the year and more than compensated for weaker
sales in the second six months as the construction
machinery sector slackened.
NOK-Freudenberg Group China successfully
expanded its leading position in the automotive
industry and several general industry segments. In
particular there was a strong rise in market share with
strategically important Chinese automotive customers
as Chinese sales was strengthened and product
solutions were specifically developed to meet the
needs of Chinese customers. In the core general
industry segments, there was a sustainable strengthening of the market position through targeted market
segmentation, the expansion of regional sales teams
and a focus on new product groups. NOK (Wuxi)
Seal Products Co., Ltd. in Wuxi acquired from NOK
Corporation was successfully integrated in the group.
The aftermarket business was systematically expanded
by Corteco China Co. Ltd., Guangzhou, China, set up
in 2009.
Constant improvements in process technology, the
systematic expansion of local production, a higher
share of local procurement, customer price initiatives
in the marketplace and quality improvements offset
the substantial rises in personnel and material costs
and brought a slight rise in profitability.
The special challenge in 2012 will be responding
successfully to the heightened competitiveness of
Chinese manufacturers and the market entry of new
international players. In addition, the ongoing issues
of rising wages and raw material costs must also be
addressed.
NOK-Freudenberg Group China is extremely well
positioned to face these challenges because setting
up new production capacities for transmission piston
seals and accumulators from the end of 2012 offers
excellent opportunities to expand the market position
further. The relocation of the largest production site
in Wuxi in mid-2012 will be used to modernize production. NOK-Freudenberg Group China will also
continue to systematically invest in total cost down
measures, employee training and quality improvements.
NOK-Freudenberg Group China expects 2012 to be
another successful year. The Business Group anticipates a weaker first half of 2012, but analysts expect
the government to ease monetary policy during the
first six months so that the economy will again gather
momentum during the second half of the year.
24
Sealing products for challenging
applications
We are the right partner for the oil and gas industry when it comes to sealing solutions that can meet the challenges of demanding applications.
Richard Schmidt, CEO and President of Freudenberg Oil & Gas.
25
As an acknowledged sealing solutions provider, Freudenberg Oil & Gas supplies global producers in the upstream
segment in particular. This is the segment that deals with the exploration and production of oil and gas and where the
demands placed on materials and technology are particularly high.
That is mainly attributable to the pressures and temperatures the seals must be able to withstand. Deep sea wellbore
pressures can be over 15,000 PSI with temperatures over 350°F. Sophisticated thermoplastic seals from the Freudenberg
Oil & Gas Business Group are designed to withstand the stresses of permanent operation under these conditions. They
enhance safety and drilling efficiency.
Quality and reliability are in demand for other products in the oil and gas industry, too. The range offered by the
Freudenberg Group spans small O-rings, elastomeric seals and large-volume seal elements used onshore and offshore.
26
2011
Sales [US $ million]
64.9
Workforce
319
Locations
Canada, Kazakhstan, Norway, Singapore,
United Arab Emirates, UK, USA
Freudenberg Oil & Gas LLC
19500 State Highway 249, Suite 440
Houston, Texas 77070 | USA
Phone: +1 281 233 1400
www.freudenberg-og.com
Freudenberg Oil & Gas provides innovative seal
solutions and differentiated seal products to the
global oil and gas industry. The Business Group is
focused on the exploration and production (upstream)
segment. Freudenberg Oil & Gas serves a wide
range of customers including oil and gas producing
companies, original equipment manufacturers and
the engineering and service companies that provide
technologies, equipment and services for producing
oil and gas from land-based and offshore platforms
and deepwater subsea wells in regions throughout
the world. Products range from simple elastomer
O-rings and seals to large elastomer elements that
work in controlling wellbore pressures during the
drilling and completion process to highly engineered
thermoplastic seals that perform at over 15,000 PSI
and more than 350°F in well stimulation services.
The Business Group has the years of experience and
the global footprint necessary to serve the oil and
gas industry.
Elastomer O-rings and specialty seals; ram and
annular blow-out preventer seal elements and seal
kits; engineered thermoplastic seals; seal stacks and
assemblies; standard and proprietary metal seal
gaskets; spiral wound gaskets; sheet gaskets
Freudenberg Oil & Gas officially began operating as
a stand-alone Business Group at the beginning of
2011 and has since then been supplying sealing
solutions to the upstream segment (exploration and
production) in the energy industry. Under a buy and
build strategy, Freudenberg Oil & Gas has taken over
a total of six companies specializing in sealing solutions for the energy industry over the past few years.
Global demand for crude oil rose by 1.3 percent in
2011, stimulating the drilling business and demand for
production plant and services in this sector. Sales by
Freudenberg Oil & Gas totaled US$64.9 million, of
which US$5.0 million was generated by the sealing
company Offshore Seals (Asia) Pte. Ltd., Singapore,
which was also integrated in the Freudenberg Group
at the beginning of 2011. Sales in euros ran at
€46.4 million. The headcount at year-end was 319.
As a result of the integration of the acquisitions, business by Freudenberg Oil & Gas in the drilling and
production segment rose by 22 percent in North
America and six percent internationally. Forecasts for
2012 indicate a further seven percent rise in global
drilling business, with the increase in the USA even as
high as 12 percent. Some sites were running at full
capacity because of high demand. Significant investment was made in expanding capacity at the facilities
in Houston, Texas, USA, Nisku, Alberta, Canada, and
in Sandnes, Norway.
Vibracoustic
20102011
The Freudenberg Group‘s long tradition in the sealing
business makes the company a well-matched partner
for the oil and gas industry when it comes to innovative materials and solutions that meet the challenges of
new and demanding applications. The Freudenberg
Oil & Gas Business Group offers the industry comprehensive know-how along with technological innovations and product enhancements. To this end, the
company set up a materials and products testing lab
in Houston which conducts tests based on the method
approved by the industry‘s association and certifies
materials and products. The lab sets Freudenberg
Oil & Gas clearly apart from the competition.
Orders for 2012 are good. The production profile is
changing as the production of shale gas and oil
continues to develop, bringing a corresponding rise in
demand for products such as thermoplastic seals.
Freudenberg Oil & Gas is well positioned with its sites
and products and ready to grow faster in 2012 and
provide an even better service to its customers.
Vibracoustic
Sales [E million]
564.7695.1
Workforce
3,0573,304
product and service program. Vibracoustic and its
partners NOK Corporation and Pyung Hwa Co. Ltd.,
Taegu, South Korea, have a presence at 32 locations
worldwide and products are supplied to all leading
automakers.
Vibration control modules and components for the
global automotive industry
Locations
Brazil, China, Czech Republic, France, Germany,
Hungary, India, Mexico, Poland, Russia, South Korea,
Turkey, USA
Vibracoustic GmbH & Co. KG
Phone: +49 (0) 6201 80-8808
Fax: +49 (0) 6201 88-8808
www.vibracoustic.com
In 2011, Vibracoustic generated sales of €695.1 million (previous year: €564.7 million), an all-time high
in the ten-year history of the company. This positive
sales trend was the result of very good developments
in the global automotive industry and numerous
project start-ups. The headcount rose by 247 from
3,057 to 3,304.
One challenge facing all automotive suppliers in
2011 was the drastic rise in raw material prices.
Vibracoustic was able to almost entirely offset these
effects by reorganizing its raw material sourcing and
through flexible logistics concepts.
Vibracoustic is the technology specialist for vibration
control modules and components for the international
automotive industry. The company enjoys a good
reputation as an original equipment developer thanks
to its proven system capability and a comprehensive
Geographical proximity to the development and
production facilities of global automotive customers is
a prerequisite for successful business development.
Vibracoustic therefore continued to expand its global
presence, setting up a new production site for engine
mounts and chassis components in Querétaro, Mexico.
Vibracoustic also continues to expand production
28
capacity in Asia, and activities in Yantai, China, in
particular have made considerable progress.
The gratifying initial success on the Chinese market
was confirmed by the acquisition of further global and
local projects. Vibracoustic was able to underscore its
good reputation as an original equipment developer
for challenging noise-vibration-harshness (NVH) solutions in the Chinese market, as elsewhere, thus shaping tomorrow‘s technology today. A motor mount
project for an electric car built by Shenzhen BYD
Daimler New Technology Co. Ltd., Peking, China,
demonstrates the innovative strength of the Business
Group.
Vibracoustic‘s technological capabilities again
helped the company to win ground-breaking projects.
General Motors, for example, will in future be
equipping a top-class model in North America with
Vibracoustic airsprings, thereby sending a signal that
there is growing demand in the USA for greater drive
comfort. This trend opens the door for Vibracoustic
on a growing market for passenger car airsprings
outside Europe. In Europe itself, the leading market
position won through high technological competence
was impressively confirmed by the acquisition of the
largest platform order to date.
By transferring innovation leadership in passenger car
applications to innovative and customized solutions for
commercial vehicles, Vibracoustic remains a pioneer
in airspring technology and makes a significant contribution to reducing CO2 emissions. The new sleeve
type airspring in the bionic airsprings range means
customers can dispense with complex body parts,
bringing weight savings of up to several hundred
kilograms.
Vibracoustic also makes a contribution to reducing
CO2 in other product areas as well, thus proactively
shaping this trend. The vibration technology specialists
have succeeded in developing an innovative produc-
tion method allowing the use of alternative materials
that weigh less to create a new lightweight torsional
vibration damper. The patented invention went into
series production on a global platform in the fourth
quarter of 2011.
Clear competences and responsibilities in an organizational structure that reflects the demands of customers worldwide give Vibracoustic a competitive edge.
The successful series rollout of global platform orders
for chassis components and engine mounts in China,
Europe, India and the NAFTA countries (North America
Free Trade Agreement) confirms the effectiveness of
the organization based on standardized production
methods and processes. This organizational principle
was systematically applied at Vibracoustic do Brasil,
Taubaté-SP, Brazil, when the company was taken over
in early 2010. It is gratifying to note that both the
product and customer structure in the region are
already expanding and the foundations for the future
can therefore be laid.
In light of numerous product rollouts in 2012,
Vibracoustic again expects to outperform the market
in spite of the macroeconomic uncertainty.
Preparations for the joint venture between Vibracoustic
and the automotive antivibration business of
Trelleborg AB are progressing in line with antitrust
procedures.
Freudenberg Schwab
2011
Sales [E million]
34.7
Workforce
67
Freudenberg Schwab
Locations
Germany, Switzerland
Schwab Schwingungstechnik AG
8134 Adliswil | Switzerland
Phone: +41 44 711 17 17
Fax: +41 44 710 05 42
www.freudenberg-schwab.com
Freudenberg Schwab successfully concluded its first
year as a stand-alone Business Group, generating
sales of €34.7 million. The headcount as at December 31, 2011 was 67.
Freudenberg Schwab is a supplier of vibration control
components and a development partner for customers in the rail vehicle industry. The system solutions
help both rail vehicle manufacturers and railway
operators improve smooth-running characteristics and
ride comfort as well as reducing wear-and-tear.
Since the 1950s, both Freudenberg and Schwab
have systematically expanded their proven ability to
develop, design and supply rail vehicle suspension
system components. These competences were combined in a joint venture in 1999 and finally came
under the Freudenberg umbrella in 2010. For many
decades, the components and systems have enabled
leading international rail vehicle manufacturers to
achieve optimum performance in regard to service
life and quality. Freudenberg Schwab operates on
the global market from its two locations in Adliswil,
Switzerland, and Hennigsdorf, Germany.
Vibration control components and systems for rail
vehicles
Demand for vibration control components in the rail
industry increased as a result of global infrastructure
expansion and the desire for greater comfort at high
speeds. Growth on the European market in 2011 ran
at roughly five percent. In Asia, the sharp rise in
population and the resulting urbanization make China
the largest growth market with forecast annual growth
of between seven and ten percent until 2016.
Freudenberg Schwab began serving customers in
China from a new branch in Beijing in December
2011. In the second half of the year the first seriesproduced hydraulic axle-guide bearings (HALL) which
optimize driving performance and reduce wear on
bogies in rail vehicles were delivered to customers in
the UK. In light of further series orders and new projects during 2011, Freudenberg Schwab expects to
see a rise in incoming orders in 2012. During the year
under review, Freudenberg Schwab expanded its
product portfolio to include airspring systems featuring
Vibracoustic Aircruise® brand‘s new airspring bellows.
Work on setting up the Business Group which began
in 2011 continued into 2012 when it took over the
vibration control business activities of the Simrit ®
brand from the Freudenberg Sealing Technologies
Business Group effective January 1, 2012. Going
forward, Freudenberg‘s vibration control technology
for the rail and general industry sectors will be
30
EagleBurgmann
20102011
eveloped and marketed under the name of
d
Freudenberg Schwab Vibration Control. Furthermore,
the sites of Freudenberg Schwingungstechnik Industrie
GmbH & Co. KG, in Velten and Freudenberg
Schwab GmbH in Hennigsdorf, both Germany, will
be merged at the Velten location.
EagleBurgmann
Sales [E million]
678.7752.8
Workforce
5,4955,766
processing, paper, water, shipbuilding, aerospace
and mining industries.
Mechanical seals, gas lubricated seals, carbon
floating ring seals, magnetic couplings, seal supply
systems, stuffing box packings, flat gaskets, expansion joints, TotalSealCare® Services, environmentallycompatible solutions, standardization of sealing
systems and application testing, after-sales service
with assembly, commissioning, repair and damage
analysis, sealing technology seminars and practical
training
Austria, Brazil, China, Czech Republic, Denmark,
Germany, India, Italy, Japan, Mexico, Turkey, USA
EagleBurgmann figures among the internationally
leading companies for industrial sealing technology.
The Business Group manufactures and markets a
broad range of high-quality products – from individual designs right through to large-batch productions,
irrespective of whether these are highly complex
dynamic seal systems such as mechanical seals and
supply units or special gaskets for a diversity of
applications and sectors of industry. A workforce
of some 6,000 creative and motivated employees
in over 70 subsidiaries develops and produces
EagleBurgmann seal solutions which customers
around the world can rely on. A close-knit sales and
service network all over the world testifies to an
international presence and customer proximity.
The products are installed wherever safety and reliability are major design considerations when sealing
demanding mediums under the most challenging
technical c onditions, for example in the oil and gas,
refinery, chemical, pharmaceutical, energy, food
EagleBurgmann Germany GmbH & Co. KG
Äußere Sauerlacher Straße 6-10
82515 Wolfratshausen | Germany
Phone: +49 (0) 8171 23-0
Fax: +49 (0) 8171 23-1214
www.eagleburgmann.com
EagleBurgmann sales in the year under review rose
by 10.9 percent to €752.8 million (previous year:
€678.7 million). The headcount in 2011 was 5,766
(previous year: 5,495), 271 higher than the previous
year.
For EagleBurgmann, the 2011 financial year was
characterized by a sharp rise in orders in the first half
of the year. Incoming orders stabilized at a high level
during the second half of 2011. In contrast to 2010,
where standard business also benefited from backlog
effects, it was chiefly project business that determined
the trend in 2011. China, India and the Middle East
were the regions with the strongest growth. Business
development in Europe was also positive as a result of
the strong project business. Global production capacities were increased on a flexible basis.
In the USA, EagleBurgmann successfully continued its
strategic growth project to increase market share
which kicked off the previous year. Sales and market
share with OEMs and operators rose and familiarity
with the name of EagleBurgmann increased. Groundbreaking for a further building in Houston, Texas,
USA, took place in spring 2011. The new building will
improve processes and workflows, and the Business
Group will be able to respond even more effectively
to the requirements of regional and global customers
as regards products and services.
Production capacity in the Middle East was expanded
substantially in order to meet rising demand for products and services in the oil and gas, petrochemical
and other sectors of industry. Two fully-equipped
service centers were opened in the Saudi Arabian
cities of Jubail and Yanbu in 2011. EagleBurgmann‘s
sales in Saudi Arabia have risen by as much as
45 percent over the last five years.
Realignment of IT systems to create a global homogeneous SAP landscape continued in Germany. The
objective is to optimize management and core business processes. Implementation will be completed on
schedule next year. The skeleton of a new production
building in Eurasburg is nearing completion and work
on gradually relocating production will begin in fall
2012.
A new mechanical seal for mobile drilling platforms
designed with underwater mountable/demountable
positioning thrusters is a promising development for
the future. These platforms can be exactly aligned
with the wellbore in any weather conditions.
EagleBurgmann developed the mechanical seals
specifically for the positioning thrusters, but they are
available in a range of diameters and can also be
used on container ships, dredgers and tankers. They
provide enhanced durability in seawater conditions
as well as good immunity to vibration and pressure
fluctuations. The Deepwater Champion Exploration
drill ship with six underwater mountable/demountable
positioning thrusters has been engaged in deep-sea
oil exploration in the Black Sea off the Turkish coast
since spring 2011. EagleBurgmann has now received
multi-million orders for this mechanical seal.
The Business Group expects growth to continue in
2012, albeit at a slower rate. In light of the economic
situation both in the eurozone and in other economies, EagleBurgmann will systematically continue with
the cost and liquidity management built up over previous years in order to respond flexibly to changes in
business and market conditions.
Dichtomatik
Dichtomatik is the Freudenberg Group‘s sales
organization in the market for technical seals. The
Dichtomatik group is a global organization with
regional headquarters in Hamburg, Germany, for
Europe and in Shakopee, Minnesota, USA, for North
and South America; the group also operates its own
companies in a further ten countries. Dichtomatik is
the market leader as regards product range and
depth as well as effective logistics. Some 55,000
standard articles are available ex warehouse and
the product program also includes roughly 115,000
custom-tailored variants. The seals are used in
numerous applications ranging from industry to the
32
Dichtomatik
20102011
Sales [E million]
76.6102.3
Workforce
432461
technical trade. Dichtomatik‘s service offering
includes the procurement of special seals, technical
consulting and customized deliveries.
by means of active price management with a view to
passing on the substantial purchase price increases to
sales markets.
O-rings, back-up rings, cords, x-rings, cover seals,
rotary shaft seals, v-rings, axial seals VRM, radial
seals, circlips, piston seals, rod seals, u-rings, packings, wipers, guide rings, guide strips
Dichtomatik‘s global activities were brought together
in June 2010, and the organization was realigned to
this global business in order to strengthen and further
expand the successful business model worldwide. In
addition to more intensive cooperation on established
markets in Europe and North America, Dichtomatik
has developed new approaches for the growth
markets of Brazil and China; these approaches are
currently being implemented.
Locations
Austria, Brazil, Canada, France, Germany, Hungary,
Italy, Mexico, Netherlands, Sweden, UK, USA
Dichtomatik Vertriebsgesellschaft für technische Dichtungen mbH
Albert-Schweitzer-Ring 1
22045 Hamburg | Germany
Phone: +49 (0) 40 669 89-0
Fax: +49 (0) 40 669 89-101
www.dichtomatik.com
In 2011, Dichtomatik with its headcount of 461
(Previous year: 432) generated sales of €102.3 million (previous year: €76.6 million).
In the first half of the year, Dichtomatik recorded
strong global demand that was once again noticeably
higher than the previous year‘s good values. Growth
momentum slacked in the second half of the year, but
prior-year sales were nevertheless exceeded. Orders
in the fourth quarter indicate consolidation at a high
level for the coming months.
One particular challenge in the year under review
was the situation on supply markets. Prices rose, at
times drastically, and some suppliers even more than
doubled delivery times. Dichtomatik initiated numerous special measures to ensure delivery capability
and significantly increased inventories. Despite the
difficult situation on procurement markets, the availability of standard seals was guaranteed in 2011.
Furthermore, sales prices were systematically adjusted
For 2012, Dichtomatik expects growth momentum to
slacken as a result of macroeconomic uncertainty and
is forecasting only slight rises in sales.
H elix Medical
2011
Sales [US $ million]
70.4
Workforce
529
Helix Medical
Locations
China, Germany, Ireland, USA
Helix Medical, LLC
1110 Mark Avenue
Carpinteria, California 93013 | USA
Phone: +1 805 684 3304
Fax: +1 805 684 1934
www.helixmedical.com
Helix Medical is a leading global manufacturer of
medical devices for the biotech, healthcare and
pharmaceutical industries, as well as in vitro diagnostics. The Business Group runs six medical manufacturing operations located within the US, Europe, and
Asia with a seventh manufacturing facility commencing production in Costa Rica in 2012. Helix Medical
provides custom manufacturing services for medical
devices, components, and subassemblies – from a
single component program to turnkey contract manufacturing. In addition to its custom manufacturing
operations, Helix Medical also manufactures and
markets the HelixMark® brand of platinum-cured
silicone tubing and fluid handling components for
the pharmaceutical and biotech industries.
The medical device division called InHealth
Technologies develops and manufactures
Blom-Singer™ voice restoration products that
are distributed worldwide.
Thermoplastic molding, silicone molding (HCR, LSR),
silicone and thermoplastic extrusions, complex
diagnostic and therapeutic catheters, assembly,
packaging, sterilization, and engineering services
For Helix Medical, 2011 was the first full financial
year as one of Freudenberg‘s stand-alone Business
Groups. Global sales totaled US$70.4 million or
€50.3 million. At year-end the headcount was 529.
Helix Medical was exposed to various challenges
worldwide which affected the entire medical tech
nology sector. In the USA the market was subject to
economic and regulatory requirements that impacted
the growth rate in this sector. In contrast, sales in
China and Europe developed particularly well.
This trend was supported by the introduction of new
products and technologies. Helix Medical will continue to invest in expanding cleanroom capacity at all
locations so that the Business Group can continue to
grow going forward and to satisfy the needs of its
customers.
Construction work on the new plant in San José,
Costa Rica, is making good progress. Production is
expected to begin as early as the second quarter of
2012. Helix Medical is closely involved in planning
new activities that reliably cater for the needs of
customers in the booming South America region.
Helix Medical has also launched several new
products in its thermoplastics and silicone business.
Major new programs with existing and new strategic
customers were successfully validated and went into
series production. One example is consumables for in
vitro diagnosis including an integrated automated
injection molding, assembly and packaging process.
34
20102011
Furthermore, Helix Medical developed a unique
silicone tubing solution for manufacturing light-
sensitive pharmaceuticals.
InHealth Technologies, the medical device division
specializing in voice restoration products, helps
improve the quality of life for people who have undergone surgery to the larynx. Innovative products such
as the Dual Valve voice prosthesis have a longer
service life, lower total costs and are well received on
the market.
Helix Medical expects to see further growth in 2012,
albeit at a slightly lower rate. This is explained by the
very challenging market and regulatory uncertainty as
well as provisions governing health cost refunds and
the future tax on medical equipment in the USA.
Irrespective of the situation in this region, Helix Medical
is nevertheless well positioned to offer innovative
solutions to meet the steadily-growing international
demand for medical technology.
Sales [E million]
633.3663.7
Workforce
3,1513,156
Nonwovens Business Area
The Nonwovens Business Area comprises the Business
Groups Freudenberg Nonwovens, Freudenberg Politex
Nonwovens and Freudenberg Filtration Technologies.
In the year under review, the Business Area generated
sales of €1,144.8 million (previous year: €1,078.6 million). At year-end 2011 the headcount was 5,085
compared with 5,020 at the close of the previous
financial year. The major customer groupings for this
Business Area are the textile and clothing industry
(Freudenberg Nonwovens), the automotive industry
(Freudenberg Filtration Technologies and Freudenberg
Nonwovens), and the construction industry
(Freudenberg Politex Nonwovens).
Freudenberg Nonwovens develops, produces and
markets nonwoven products for a wide range of
applications. Nonwovens made by Freudenberg are
used in interlinings for the garment industry and for
technical applications such as battery separators,
for acoustic purposes to provide sound absorption,
as fireblockers in furniture and as cable insulation.
In the medical and hygiene sector, nonwovens from
Freudenberg offer the highest comfort and safety.
Freudenberg was the first company to introduce
nonwovens on the market and continues to set the
global standard with new ideas such as Lutradur
ECO® and Vilene® Power Dot ® Bonded. Freudenberg
Nonwovens operates a global sales network and
manufactures at 20 locations worldwide. The company has enjoyed very close cooperation with Japan
Vilene Company Ltd., the Japanese market leader in
nonwovens, for many decades.
Interlinings, industrial nonwovens, spunlaid
Argentina, Brazil, China, France, Germany, India,
Italy, South Africa, South Korea, Spain, Taiwan, UK,
USA
Freudenberg Vliesstoffe KG
Phone: +49 (0) 6201 80-5009
Fax: +49 (0) 6201 88-5009
www.freudenberg-nw.com
In 2011, sales by Freudenberg Nonwovens rose to
€663.7 million (previous year: €633.3 million) representing a year-on-year rise of 4.8 percent. While
sales developed very well during the first six months
of the year, the Interlinings and Industrial Nonwovens
Division recorded a downturn in the second half of
the year. The headcount rose from 3,151 at year-end
2010 to 3,156 as at December 31, 2011.
The financial year was characterized by sharply-rising
raw material prices, the effects of the earthquake and
tsunami disaster in Japan, slacker demand for industrial nonwovens plus a sharp downturn in the clothing
industry in the second half of the year – particularly in
the USA and Europe.
The Interlinings Division made a good start to the
2011 financial year and was able to pass on the
substantial rises in raw material costs to customers.
In particular sales to premium customers in Italy
expanded as a result of the growth initiative in the
men‘s apparel market. However, the global interlinings business was significantly affected by slacker
demand in all regions from the middle of the year.
The Business Group maintained margins despite
falling demand thanks to systematic cost management
and a customer- and value-oriented sales approach.
The Interlinings Division is working on expanding the
men‘s apparel business. The leading position as a
reliable partner for the clothing industry was successfully expanded in 2011 with innovations such as Viltec ®
and high-elastic products. Freudenberg Nonwovens
sold its 50 percent share in the F reudenberg Vitech L.P.
joint venture to the Japanese partner Japan Vilene
Company Ltd. effective December 31, 2011.
The Spunlaid Division grew sales significantly in Asia,
the USA and Europe. Continued strong demand for
spunlaid in Asia, the expansion of business in India
and the development of a new product range for
sports shoe applications further strengthened the
market position in Asia. The overall rise in automotive
production also boosted business in the USA. The
trend towards environmentally-friendly products has
become more pronounced in North America; as a
result, the Business Group was very successful in its
efforts to develop and market environmentally-friendly
products based on recyclates. There was also a
noticeable rise in spunlaid business in Europe. Raw
material price rises were passed on to customers. The
new Lutraflor ® automotive carpet system was very well
received by the market and received several innovation awards. The Kaiserslautern plant was reorganized to improve competitiveness. In the course of this
reorganization, flat-sheet filter production lines were
transferred to Freudenberg Filtration Technologies at
the end of 2011.
The Industrial Nonwovens Division faced several
challenges. Industrial business in Asia was weak
following the disaster in Japan. Battery separator
business in Asia also slackened as China‘s electrical
equipment export business took a dip. Freudenberg
Nonwovens laid the foundations for growing hygiene
36
20102011
Sales [E million]
Workforce
product business in 2012 with the completion of two
new hygiene product lines in Korea. The lines were
successfully commissioned in April 2011 and capacity
utilization was already good in the second half of
2011. The Business Group has provided its development partners in the battery and automotive industry
with a forward-looking product innovation in the form
of lithium-ion battery separator samples from a new
coating line. Momentum on these markets has accelerated fast as electric car production volumes have
increased.
In light of the financial and debt crisis in both the
eurozone and other economies, Freudenberg
Nonwovens expects to see a slight drop in demand in
consumer business in the 2012 financial year. The
automotive industry will have a decisive effect on
further business development. On the cost side, the
Business Group will continue with its site optimization
and capacity flexibilization, particularly as regards
the interlinings sites in Europe and Asia. Innovation
efforts will continue to concentrate on the development of lithium-ion battery separators and nonwovenbased materials for fuel cells.
203.9223.0
609611
Freudenberg Politex Nonwovens, headquartered in
Novedrate, Italy, is the world leader in the production and marketing of polyester nonwovens, mainly
used as reinforcements for bituminous roofing membranes. A broad range of products is furthermore
sold to the construction industry for different applications. Padding materials for the furniture and apparel
industries round off the product range. The majority
of products is manufactured with recycled polyester
obtained inhouse from post-consumer PET bottles.
This integrated production cycle not only recycles
waste, but also significantly reduces CO2 emissions.
Roofing: Staple and spunbonded polyester nonwovens (standard or glass filament-reinforced) used as
backing for bituminous roofing membranes
Construction materials: Products for waterproofing,
thermal insulation, sound absorption, heat reflection,
drainage, reinforcements and other applications
Padding: Voluminous polyester nonwovens for the
apparel and furniture industries
Locations
China, France, Italy, Poland, Russia, USA
Freudenberg Politex S.r.l.
Strada Provinciale Novedratese, 17/a
22060 Novedrate (CO) | Italy
Phone: +39 031 793 111
Fax: +39 031 793 202
E-ail: [email protected]
www.freudenbergpolitex.com
In 2011, Freudenberg Politex Nonwovens generated
sales of €223.0 million (previous year: €203.9 million). Sales of roofing reinforcements rose by 9.4 percent year-on-year. Sales in the construction materials
segment increased by 13.4 percent. The headcount
rose slightly from 609 to 611.
Overall, developments in the construction industry in
Western Europe and North America remained sluggish. Demand for roofing reinforcements in these
markets was shored up by repairs and renovations.
The market rallied strongly in particular in Russia,
South America and some regions in the Middle East,
where infrastructure expansion lifted demand. Thanks
to its comprehensive product range, its know-how
in both spunbond and staple technology, and close
ties with customers worldwide, Freudenberg Politex
Nonwovens was able to reaffirm its global leadership
in the polyester roofing market.
The first half of the 2011 financial year was characterized by an unparalleled exponential rise in prices –
post-consumer PET bottles were particularly affected.
Freudenberg Politex Nonwovens was therefore
obliged to repeatedly raise sales prices in order to
absorb raw material price increases. The situation
eased in the second half of the year and raw material
prices stabilized. The introduction of major innovations in process technology and reductions in raw
material consumption also contributed to cutting costs.
The Business Group conducted an annual review of
the ecobalances of its products in 2011; this review
serves to assess the impact of its products and processes on the environment. The major European product lines (Texbond®, Terbond® and Ecozero®) were
each certified to the EPD (Environmental Product
Declaration). Products from Macon, Georgia, USA,
received Underwriters Laboratories certification which
validates the share of recycled materials. As a result
of its environmental commitment, Freudenberg Politex
Nonwovens was cited by the Sustainable Development Foundation in Italy as a leading example in the
green economy. In the USA the company received the
“Keeping America Beautiful” award for its commitment to protecting and preserving the environment.
For 2012, Freudenberg Politex Nonwovens expects
difficult market conditions in the first half of the year in
particular. Against this backdrop the Business Group
will work on consolidating its position, extending
market leadership, improving production efficiency
and monitoring developments on growth markets.
Expansion of production capacity in Nizhniy
Novgorod, Russia, will be complete by the middle of
the year. The Business Group‘s main drivers for maintaining market leadership in 2012 will be innovation
and customer orientation.
38
Clean air for better performance
In project implementation, it is very important to factor in local conditions. That
is how we found the right solution for the Meggle filter house in Wasserburg.
Jürgen Kempf, Engineering Projects Manager Germany, Freudenberg Filtration Technologies.
39
Freudenberg Filtration Technologies designed and built a filter house (photo) for the power plant at the Meggle
(milk products company) headquarters in Wasserburg, Germany. This is a flagship project for the Engineering Projects
business line of the Freudenberg Business Group.
The idea of these engineering projects is always the same – irrespective of the power plant location. Just as clean air
improves human performance, gas turbines need air that is virtually free of particles, dry and heated to optimum
operating temperature in order to function properly. In project implementation, it is important to factor in local conditions and to offer the customer individual solutions. The Freudenberg Group is an expert in this respect – regardless of
whether the plant is located in India’s hot and humid climate or the foothills of the Alps.
The new filter house at the milk products company’s premises has some interesting technical features: It is positioned
on supports and can be moved within the space of an hour if it is necessary to replace a turbine. In addition, a special
anti-icing system developed by Freudenberg Filtration Technologies keeps the bird screens integrated in the weather
protection enclosures and the filters themselves free from ice. And filters can be replaced as the need arises because
they are continually supervised by differential pressure monitoring systems.
40
20102011
Sales [E million]
241.4258.1
Workforce
1,2601,318
Freudenberg Filtration Technologies develops and
produces innovative filtration solutions worldwide
which improve the efficiency of industrial processes,
protect people and conserve resources, protect the
environment and enhance the quality of life.
Freudenberg filters are used successfully for intake,
exhaust and recirculating air filtration in many industrial applications such as production and office
ventilation as well as in the transport (rail vehicles,
ships and planes), energy generation, healthcare and
pharmaceutical sectors, food and beverage production and cleanroom technology. In the field of liquid
filtration, Freudenberg Filtration Technologies provides solutions for coolant and lubrication applications, pool and spa, residential water filtration,
beverages and foodstuffs as well as products for
manufacturing membranes and filter candles. In the
human protection filtration sector, the Business Group
provides filter solutions for office equipment, respiratory masks, vacuum cleaners and air conditioning
systems and other technologically challenging applications. As a development partner and manufacturer
for the automotive industry, Freudenberg Filtration
Technologies produces cabin air filters and engine
intake air filters. A comprehensive range of system
solutions (e.g. development and construction of filter
plant) and services (e.g. filterCair air quality management) complement the product portfolio.
Intake, exhaust and recirculating air filters for general
ventilation applications; filters and filter media for
residential applications, air conditioning systems,
office equipment, respiratory masks and vacuum
cleaners; filter media for liquid filtration; cabin air
filters; engine intake air filters; filterCair air quality
management; plant development and construction;
filter testing; training and consulting
Argentina, Australia, Brazil, China, Germany, India,
Italy, Japan, Mexico, Slovakia, South Africa, South
Korea, Thailand, USA
Freudenberg Filtration Technologies KG
Phone: +49 (0) 6201 80-6106
Fax: +49 (0) 6201 88-6106
www.freudenberg-filter.com
Freudenberg Filtration Technologies expanded its
market position in 2011, generating sales of
€258.1 million (previous year: €241.4 million) with a
headcount of 1,318 (previous year: 1,260). All regions
and segments contributed to this positive development.
Operating margins in the first half of the year were
affected by the sharp rise in raw material costs and
higher energy and logistic expenses; these were only
partly offset by price increases. Measures to save
materials by improving processes and through technological innovations were stepped up and will be
continued in 2012. Global sales of micronAir ® cabin
air filters for OEMs and the aftermarket progressed
well. The Business Group won important orders for
new vehicle platforms which go into series production
over the next few years. Sales in China were especi
ally high, leading to high capacity utilization at the
Suzhou and Changchun plants and necessitating
further capacity expansion: Freudenberg Filtration
Technologies and Japan Vilene Company Ltd. are
investing in a new filter plant in Chengdu, South
Western China, which will begin producing filters for
the automotive industry in 2013. Global business with
engine intake air filters also developed well; a growing number of top-class and mid-class vehicles are
being equipped with micronAir ® high-performance
filters.
in 2012 lie in compensating for rising raw material
and energy costs by increasing prices, improving
productivity and through innovations. The Business
Group will seek to further enhance the attractiveness
of a product offering that brings added value by
expanding the product program and acquiring
smaller businesses specializing in high-quality filtration concepts – particularly in the BRIC countries.
In the industrial filtration division, Freudenberg
Filtration Technologies underscored its claim to technological leadership with numerous innovations: These
include Viledon® compact pocket filters with new,
high-performance nano jetSpin filter mediums, NEXX
filter bags with Evolon® filter mediums and Hydrotexx
filter mats for food and drinking water filtration made
from 100 percent food-grade fibers. Orders in the
liquid filtration business in Asia and Europe were high
throughout the year. The Business Group launched
a comprehensive air quality and filter management
program under the name of Viledon® filterCair –
designed especially for surface treatment lines –
to assist customers in making maximum use of the high
quality filters in their complex systems. The program
has developed well in all regions.
For 2012, Freudenberg Filtration Technologies expects
to see a moderate rise in sales as a result of macroeconomic uncertainty.
By expanding its plant engineering business,
Freudenberg Filtration Technologies is aiming to move
away from its role as a supplier of high-quality filter
products towards a position as an all-round partner
for holistic, energy-efficient filtration solutions. A
supra-regional project team won a strategically important major order: The Business Group has been commissioned to develop and build the complete filter
house plus high-performance filter cartridges for a
new air separation plant at a global manufacturer of
industrial gases.
The Business Group is proceeding with great caution
in its response to the ongoing financial crisis and
global economic uncertainty. It is planning further
flexibilization in order to handle ever more volatile
demand. The main challenges for the Business Group
Household Products Business Area
The Household Products Business Area comprises the
Household Products Business Group, whose vileda®,
O‘Cedar ®, Wettex ®, Gala® and SWASH ® brands are
active in the mechanical cleaning equipment and
laundry care segments for final users and commercial
cleaning companies.
Freudenberg Household Products is one of the leading international manufacturers of brand cleaning
articles and systems and laundry care products.
The company is the market leader in almost all
42
20102011
Sales [E million]
676.8687.2
Workforce
2,3473,082
c ountries. Products are marketed under the brand
names of vileda®, O‘Cedar ®, Wettex ®, Gala® and
SWASH®. The Business Group‘s success factors are
detailed knowledge of the market, innovations, new
and effective products and a pronounced customer
orientation. These are complemented by international
market and customer research, innovation centers
and production facilities in all regions of the world
and a dedicated sales network in 35 countries.
Floor cleaning equipment, household cloths, cleaning
articles, household gloves, mats, laundry care products such as ironing boards and clothes driers
Locations
Australia, Belgium, Canada, Chile, China, Croatia,
Czech Republic, Denmark, Finland, France, G
ermany,
Greece, Hong Kong, Hungary, India, Indonesia, Italy,
Jordan, Malaysia, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Russia,
Serbia, Slovenia, Spain, Sweden, Taiwan, Thailand,
Turkey, UK, USA
Freudenberg Haushaltsprodukte KG
Im Technologiepark 19
Phone: +49 (0) 6201 80-871000
Fax: +49 (0) 6201 88-874000
www.vileda.com
The business of Freudenberg Household Products is
divided into the Consumer Division (some 85 percent
of sales) and the Professional Division. Sales rose by
1.5 percent to €687.2 million (previous year:
€676.8 million). The headcount at year-end increased
by 735 to 3,082, chiefly as a result of the acquisition
of shares in 13 companies of the Trade & Investment
in Asia-Pacific (TIA) Group. These companies are not
yet included in the consolidated sales and earnings
figures.
In 2011, Freudenberg Household Products operated in
mixed, stagnating markets worldwide. Lower consumer
income as a result of the financial and debt crisis
together with high unemployment in Southern Europe
and the USA led to shrinking markets, some showing
double-digit downturns. In contrast, the regions of
Asia/Pacific, Middle East, Latin America and Russia
were growth drivers.
The Business Group increased its competitiveness in
almost all regions and recorded further sales growth
in 2011.
In 2011, Freudenberg Household Products concentrated on the robust expansion of business in growth
regions, product innovations with the corresponding
advertising activities, cooperation with strategic
partners and a marketing strategy geared to customer
benefits and sustainability.
One focus for the Business Group in 2011 was successfully setting up distribution and a market presence
in Asia/Pacific and Russia; this contributed to a
15 percent increase in sales in these areas and significant growth in all countries. The acquisition of TIA in
October has added China‘s second largest factory for
mechanical cleaning products, further established
sales companies in Thailand, Malaysia, Indonesia
and Taiwan, the SWASH ® brand and some €20 million in additional sales to the Business Group‘s port
folio. Furthermore, a plant in Russia was successfully
commissioned on the premises of the sister company
Freudenberg Politex Nonwovens in Nizhniy
Novgorod.
A further focus of activities was the successful launch
of innovations such as the SuperMocio Revolution, the
integrated mop-spray system 1-2 Spray, the rotating
floor cleaning system Easy Wring & Clean and the
first vileda® cleaning robot. All innovations, together
with further product enhancements, contributed to solid
growth in all categories.
Some of the patented products in Italy and Germany
were honored with a coveted innovation prize and
also received a brand award, both presented by
independent institutions.
In the Professional Division, a strategic partnership for
the exclusive marketing of innovative waste systems in
Europe was agreed with rothopro GmbH.
In light of the sharp rises in raw material prices,
efforts were undertaken together with strategic partners to intensify the use of alternative raw materials
and recyclates in products in order to limit price
increases for retailers and consumers. This, combined
with active process, cost and environmental management, is aimed at further enhancing product efficiency
and competitiveness.
Specialties and Others Business Area
The Specialties and Others Business Area comprises
the Business Groups Freudenberg Chemical Specialities,
Freudenberg NOK Mechatronics, Freudenberg IT and
Freudenberg New Technologies, Freudenberg Service
Support and Freudenberg Real Estate Management,
the latter three primarily operating internally. During
the year under review, the companies in this Business
Area generated sales of €998.4 million (previous
year: €890.0 million). At year-end 2011, the headcount was 4,714 compared with 4,679 at year-end
2010. Well over half of the sales generated by this
Business Area are attributable to the Freudenberg
Chemical Specialities Business Group, which supplies
the automotive and mechanical and plant engineering
industries as well as many other sectors. The
Freudenberg NOK Mechatronics Business Group
produces almost exclusively for the automotive
industry. Freudenberg IT is an IT service provider
primarily serving small and medium-sized businesses
in various branches of industry and the trade sector.
Freudenberg Household Products expects to outperform the market again in 2012. The focus will lie on
the integration of TIA and further expansion of the
presence in growth regions, implementing the powerful innovation and strategic retail partners program,
extending the basis for business in the USA, and
streamlining the organizational structure in Europe
including the necessary adjustments in Southern
Europe. The Business Group will be focusing more
closely on cooperation projects with a view to cutting
costs and improving market position.
The Business Group comprises the largely autonomous divisions of Klüber Lubrication, Chem-Trend,
SurTec and OKS operating independently in their
respective markets. Klüber Lubrication is one of the
44
20102011
Sales [E million]
581.0695.6
Workforce
2,4062,984
world‘s leading manufacturers of specialty lubricants.
Its tailormade tribological solutions are almost exclusively sold direct to customers in virtually all industries
and markets. Chem-Trend is a world market leader
for release agents used to manufacture composite,
rubber, plastic, metal and polyurethane molded
parts. SurTec International GmbH headquartered in
Bensheim, Germany, and acquired at the end of
2010 is a leading supplier of surface treatment and
electroplating products. OKS is a specialist for highperformance lubricants focusing on the maintenance
and repair market. OKS serves customers in trade
and industry through industrial distributors.
Oils, greases, waxes, pastes, bonded coatings, dry
lubricants, solid lubricants, anticorrosion products,
chemotechnical products for MRO, hydraulic fluids,
cleaning agents, release agents for die casting,
composites, rubber and polymer processing, surface
treatment products, industrial parts cleaning and
electroplating
Locations
Argentina, Australia, Austria, Belgium, Brazil, Chile,
China, Croatia, Czech Republic, Denmark, Egypt,
Finland, France, Germany, India, Italy, Japan,
Malaysia, Mexico, Netherlands, Norway, Poland,
Romania, Russia, Serbia, Singapore, Slovakia,
Slovenia, South Africa, South Korea, Spain, Sweden,
Switzerland, Thailand, Turkey, United Arab Emirates,
UK, USA, Vietnam
Freudenberg Chemical Specialities KG
Geisenhausenerstraße 7
81379 Munich | Germany
Phone: +49 (0) 89 7876-0
Fax: +49 (0) 89 7876-1600
www.fcs-munich.com
The Freudenberg Chemical Specialities Business
Group generated sales of €695.6 million in 2011
(previous year: €581.0 million), representing an
increase of 19.7 percent. Sales generated by the
SurTec group acquired at the end of 2010 are
included for the first time. The headcount rose from
2,406 in the previous year to 2,984.
In 2011, the Business Group continued on the growth
trajectory of 2010. The positive trend was driven by
sustained high demand from key industries, above all
the automotive industry and the general industry
sector, throughout much of the year. The stable economic climate led to high demand for products for
industrial and commercial maintenance and repair
marketed by specialist retailers. The first signs that the
economy was cooling off did not emerge until the
fourth quarter – and orders declined accordingly.
The Business Group maintains a successful presence
on all major regional markets and supplies almost all
industries and sectors. The broad product portfolio,
persistently high innovative strength and exceptional
proximity to customers as evidenced by numerous
development partnerships and customized solutions
have a stabilizing effect that more than compensates
for regional market or sector-specific fluctuations in
demand. The industrial core markets in Europe and
NAFTA countries (North America Free Trade
Agreement) continue in their role as reliable sales
drivers with as yet still unharnessed market potential.
Furthermore, positive business development is also in
particular attributable to the strong market presence
on global emerging markets which was initiated at
an early stage. In addition, numerous development
projects to strengthen the regional organizations on
a sustainable basis and to expand technical infra
structure were launched last year; examples include
projects in China, India and Brazil.
Freudenberg Chemical Specialities gives top priority
to the systematic further development of market segments with particularly attractive growth prospects for
the Business Group‘s divisions. Various projects serve
[based on pro-rata shareholding]
20102011
Sales [E million]
28.233.0
Workforce
to strengthen the market position and optimize internal
processes and cost structures over the long term.
Examples include the ongoing introduction of a standardized SAP platform for the European companies.
The consolidation of Chem-Trend production in Europe
and the associated relocation of OKS to the Maisach
facility were successfully completed without interrupting business.
The integration projects associated with the acquisition of SurTec International GmbH were almost fully
completed during the course of the year. The consolidation of the SurTec group is also making excellent
progress. Attention is now focusing on projects to
increase operational capability and strengthen the
market position in terms of both regions and market
segments.
Despite a noticeable slackening of demand in certain
markets and regions towards the end of the year,
Freudenberg Chemical Specialities again expects to
see moderate growth in 2012. However, greater
attention will be devoted to dealing with the anticipated increase in raw material costs.
185179
Freudenberg NOK Mechatronics is a 50:50 joint
venture between Freudenberg and NOK Corporation.
Business activities range from the development and
production of mechatronic solutions based on large
flexible printed circuits, ready-for-use SMD assembly
flat wiring harnesses which can integrate switches,
sensors, LED and other functional components,
and connector technology. Experience in research,
development and production drawn from the joint
venture partners makes the company a competent
and reliable development partner and supplier,
particularly for the automotive industry, module
suppliers and harness makers.
Mechatronic solutions based on large flexible printed
circuits including connector technology with and
without SMD assembly, heating and antenna foils,
component assembly
Locations
Germany, Hungary
Freudenberg NOK Mechatronics GmbH & Co. KG
Phone: +49 (0) 6201 80-3896
Fax: +49 (0) 6201 88-3896
www.freudenberg-mechatronics.de
46
Following the swift recovery in 2010, the positive
business trend for Freudenberg NOK Mechatronics
continued in 2011.
New orders and projects brought forward –
particularly in the lighting segment – led to sales of
€66.0 million (previous year: €56.4 million). On the
basis of the pro-rata consolidation, sales of €33.0 million are disclosed in the consolidated financial statements of the Freudenberg Group. At year-end, the
headcount at Freudenberg NOK Mechatronics was
357, of which a headcount of 179 (previous year:
185) is attributable to Freudenberg on the basis of the
pro-rata consolidation. Adjusted for the transfer of the
actuator business to the partner Eagle Industry Co. Ltd.,
this represents a rise of 15.9 percent.
Mechatronics business based on flexible circuit
boards increased from €40.3 million to €49.9 million,
which in turn represented an increase of 23.7 percent. This accelerated growth is chiefly attributable to
an increase in final used demand for applications
supplied by Freudenberg NOK Mechatronics. Despite
initial procurement problems with regard to raw
materials and components, capacity expansion was
swiftly implemented without any delivery bottlenecks.
New orders were won in the external lighting
segment – where complete light modules were produced in series for the first time – and in ambient
lighting for headliner applications. The first products
for day running lights were produced in series using
a new high-temperature material. Flat-wiring solutions
for lithium-ion batteries are being tested by major
customers. The Business Group is at the development
stage for medical applications based on flexible
printed circuits and has already delivered the first
sensor samples.
The actuator business was sold to Eagle Industry Co.
Ltd. – a subsidiary of the joint venture partner
NOK Corporation – effective June 30, 2011.
Freudenberg NOK Mechatronics expects to see stable
sales developments in 2012 and will be using the
year to further consolidate capacity following the
previous strong growth.
Freudenberg IT
Freudenberg IT is an internationally active out
sourcing and consulting solutions provider for SAP
and MES (Manufacturing Execution System).
Preconfigured solutions offer the security of globally
functioning standards. Freudenberg IT combines
these standards with customized elements tailored to
meet individual needs.
The company designs, implements and optimizes IT
infrastructures, runs SAP application hosting and
supplies the relevant application management
services. Freudenberg IT offers SMEs and large
companies the holistic MES adicom® Software Suite
solution for planning and control in production and
personnel.
Outsourcing, consulting for SAP and MES
Freudenberg IT
20102011
Sales [E million]
Workforce
88.2116.8
650681
Locations
China, Germany, Hungary, Singapore, Spain, USA
DIN EN ISO 9001 and to the systematic implementation of IT infrastructure library processes.
Freudenberg IT KG
Phone: +49 (0) 6201 80-8000
Fax: +49 (0) 6201 88-8000
www.freudenberg-it.com
Successful recertification as an SAP Global Hosting
Partner, SAP Global AMS Partner and SAP Partner
in Cloud Services underscored the good partnership
with SAP. Extensive investments in technical infrastructure and manpower in 2011 created the basis for
further growth.
In the 2011 financial year, Freudenberg IT grew sales
by 32.4 percent to €116.8 million (previous year:
€88.2 million). Some 76 percent of sales were generated outside the Freudenberg Group. At year-end
2011, 681 associates worked for the Business Group
at 18 locations worldwide, 31 more than the previous
year.
Orders in all divisions developed well in the 2011
financial year as a result of the continuing good
macroeconomic situation. Outsourcing sales rose by
43.8 percent. Consulting (plus 17.4 percent) and
Application Management Services (AMS) (plus
11.3 percent) also made a significant contribution to
the increase in sales. The Business Group reaped
above-average benefits from the growth momentum
on the markets in the USA and China, thus putting the
overall development of Freudenberg IT on a broader
footing going forward.
The Business Group‘s order situation stabilized at last
year‘s high level as a result of several major outsourcing orders from the mid-market. The noticeably higher
interest in outsourcing shown by the mid-market was a
contributory factor. This positive trend continued in
2011 following the difficult economic conditions in
2009 and 2010.
A sustained stabilization in the quality of the major
outsourcing contracts won in 2009 and 2010 was
achieved in the year under review. This is partly
attributable to certification to ISAE 3402 Type II and
The “Customer First” initiative launched in 2011
brought the first positive results in the shape of
increased customer satisfaction and customer retention. These customer-oriented activities will be one
focus of work in 2012. Business expansion efforts
will also concentrate on SAP core business in Europe
and on continued above-average growth in business
in other countries.
48
20102011
Sales [E million]
29.034.1
Workforce
248270
olymer materials, intellectual property rights manp
agement, patent and trade mark research, fuel cell
components and venture capital
Location
Germany
Freudenberg New Technologies KG
Phone: +49 (0) 6201 80-2659
Fax: +49 (0) 6201 88-3094
www.fnt-kg.com
The Business Group comprises the lead company
Freudenberg New Technologies KG together with the
companies Freudenberg Forschungsdienste KG,
Freudenberg FCCT KG and Freudenberg Venture
Capital GmbH, all registered in Weinheim. This
organizational structure allows a focused approach
to innovation and new business at Freudenberg. The
New Business Development Division at the lead
company reinforces the innovative strength of
Freudenberg. The Idea Pool takes up the ideas of
associates and transforms them into concrete business. Freudenberg New Technologies KG is also
responsible for cross-functional innovation activities
and public funding. Freudenberg Forschungsdienste
KG functions as a partner for customers in the development of new and the optimization of existing
materials and processes and as an experienced
service provider for damage analysis and other
research services. Freudenberg FCCT KG develops
fuel cell components such as seals, gas diffusion
layers, humidifiers and filters. Freudenberg Venture
Capital GmbH reviews participations in startup
companies offering innovations in fields related to
Freudenberg activities, putting up risk capital where
appropriate.
Development, testing, computation, analysis of
In the 2011 financial year, sales by the Freudenberg
New Technologies Business Group, which is mainly
active for customers in the Freudenberg Group, rose
by €5.1 million to €34.1 million (previous year:
€29.0 million). The largest share of sales is generated
by Freudenberg Forschungsdienste KG. At December
31, 2011, the headcount at Freudenberg New Technologies was 270, 22 more than in the previous year.
The New Business Development Division of
Freudenberg New Technologies KG continued to
encourage associates to submit ideas for new business with the “Your Idea – powered by Freudenberg”
campaign. These ideas are reviewed internally and,
if they appear promising, then launched as projects
under the stage gate process. The business idea that
made the most progress in 2011 is called “scaffolene”
and the objective is to develop to market maturity
special bioresorbable nonwovens with defined therapeutic properties. The first near-production scaffolene
nonwovens have already undergone medical application tests in the cleanroom as part of joint cooperation
projects with reputed manufacturers of medical technology and pharmaceutical products.
Efficient, CO2-free technologies are indispensable for
safeguarding sustainable energy supplies in the
future. Fuel cells play a key role for mobile and stationary applications. Freudenberg FCCT KG develops
and manufactures components for the global fuel cell
market for automotive, non-automotive and domestic
energy supply applications.
The automotive industry as well as non-automotive
power technology companies and energy suppliers
now have market-ready products. Apart from the
known types of fuel cell vehicles (passenger cars and
buses), the first commercial fuel cells for non-automotive
markets are now available, particularly in leisure
applications. The number of series applications has
risen compared with the previous year. Freudenberg
FCCT KG is excellently positioned with its unique
product portfolio of stack (seals, gas diffusion layer)
and system components (filters, humidifiers), is already
a series producer and has established itself as a leading supplier. The focus over the coming years will
center mainly on series production and cutting costs.
Freudenberg Forschungsdienste KG supports
Freudenberg Business Groups in the development and
introduction of new products and processes. In 2011,
the volume of business grew to approximately
€28 million. Sales to external customers rose to over
€6 million. The first projects in Freudenberg‘s new
market segments of oil and gas and medical technology were successfully launched. One of these projects
received prestigious innovation awards. The “smart
plaster” project which is being jointly conducted with
the Medical Technology Institute of Heidelberg University, Mannheim University of Applied Sciences and
Mektec Europe GmbH, Weinheim, Germany, received
an award from the State of Baden-Württemberg under
the “Land of Ideas” initiative, as well as the RheinNeckar region innovation prize.
Freudenberg New Technologies will continue to work
on promising fields in 2012, focusing in particular on
the market development of fuel cells. Efforts will also
address expanding market access for projects with a
positive environmental impact (“Clean Tech”).
Freudenberg Service Support operates the industrial
parks in Weinheim, Neuenburg and Laudenbach,
all Germany. The Division comprises the companies
Freudenberg Service KG and Freudenberg
Verpflegungsdienste KG, both domiciled in Weinheim.
Freudenberg Service KG supports its customers by
providing a variety of services at the three industrial
parks such as occupational health and preventive
healthcare, accounting, energy management, infrastructure and communication technology, a pension
service, plant security and fire services.
Freudenberg Service Support operates a trigeneration plant (CCHP) at the Weinheim site providing
environmentally-friendly energy generation and
supply. Freudenberg Verpflegungsdienste KG is
responsible for works catering for all sections of the
Freudenberg industrial complex in Weinheim.
Industrial park operation, energy services, infrastructure and communication technology, shared service
centers, catering
50
20102011
Sales [E million]
Workforce
53.756.9
321324
Location
Germany
Freudenberg Service KG
Phone: +49 (0) 6201 80-0
Fax: +49 (0) 6201 88-0
www.freudenberg-service.de
The Freudenberg Service Support Division is primarily
an internal service provider and operates industrial
parks at Freudenberg locations in Germany. In 2011,
the Division generated sales of €56.9 million (previous year: €53.7 million).
The financial year of the energy management unit was
characterized by low demand for heat energy as a
result of the relatively warm weather in spring and fall
2011. The electricity required by a total of 21 sites
was successfully procured. Freudenberg Service
Support is planning to expand energy procurement
services at national and international level over the
coming years. Germany‘s new energy concept passed
in 2011 is likely to increase the price of energy.
Due to rising demand, the plant security and fire
services unit will be expanding core business such as
security concepts and fire prevention consulting, and
offering an extended service in 2012.
Freudenberg Verpflegungsdienste KG grew sales as
the number of meals served by works catering in
Weinheim rose and additional business such as conference and hospitably catering was won.
At year-end 2011, the headcount at Freudenberg
Service Support was 324 (previous year: 321).
The Freudenberg Real Estate Management Division
was set up in 2008. Under the guidance of the lead
company Freudenberg Immobilien Management
GmbH, Weinheim, the Division is responsible for all
real estate issues relating to Freudenberg companies
worldwide.
Activities include the purchase of land and erection
of buildings, the purchase or sale, hire or rental of
production buildings, warehouses or offices as well
as consultancy and engineering services on all real
estate issues. In addition, Freudenberg Immobilien
Management GmbH develops entire production
facilities and new development concepts, e.g. for
Weinheim Technology Park or other unoccupied
industrial space.
The provision of real estate for Freudenberg companies and external firms; corporate real estate management – the structured and efficient management
of real estate; planning, construction, purchase and
sale of real estate; hire and letting of production,
logistics and office space; infrastructure planning
and technical facility management
20102011
Sales [E million]
Workforce
47.751.8
4954
Location
Germany
Freudenberg Immobilien Management GmbH
Phone: +49 (0) 6201 80-6724
Fax: +49 (0) 6201 88-6724
www.freudenberg-immobilien.com
In the 2011 financial year the Freudenberg Real
Estate Management Division with its headcount of 54
(previous year: 49) generated sales of €51.8 million
(previous year: €47.7 million). The rise is chiefly
attributable to additional rental income from properties in China and the USA commissioned in 2010
and to the rise in the technical facility management
business.
In March 2011, a 1,000 square meter production hall
in Laudenbach was handed over to AWETIS Engineering + Manufacturing GmbH, Munich, Germany.
Work on the new factory in Eurasburg, Germany,
for EagleBurgmann which was mothballed in 2009
as a result of the economic and financial crisis
resumed in March 2011. The 15,400 square meter
factory will be completed by the end of June 2012.
The 12,800 square meter new build in Berlin-Adlershof
with offices and production halls was handed
over to Freudenberg Spezialdichtungsprodukte
GmbH & Co. KG, Weinheim, Germany, in June 2011.
Work began on a new 2,300 square meter office
building for EagleBurgmann in Houston. The building
is scheduled for completion at the end of 2012.
A section of real estate not used for operations in
Weinheim Technology Park was sold to a global
engineering office for development.
Freudenberg Real Estate Management‘s quality
management system was successfully audited to
DIN EN ISO 9001 in December 2011.
52
Less wear and greater stability
Strong growth on the market for rail vehicles is forecast for the coming years in response to demand for greater comfort
at high speed and improved noise insulation as well as an expanding rail infrastructure – especially in the BRIC countries.
Freudenberg supplies this market with vibration control components and systems. One particularly innovative Group
development is the hydraulic axle-guide bearing known as HALL.
This bearing simultaneously optimizes the driving performance of rail vehicles on the straight and in bends. It combines
the low longitudinal stiffness needed for bends with the high longitudinal stiffness required for the straight in one single
component. Optimum adjustment of the axle-guide bearing presents the biggest challenge in rail vehicle design.
The lowest possible level of longitudinal stiffness is required for low-wear, quiet running properties in bends; on the
other hand, the axle-guide bearing has to be very stiff in order to ensure that the vehicle runs smoothly on the straight.
In the past, these conflicting demands led to compromise solutions being used.
Freudenberg Schwab Vibration Control has squared the circle with the help of an integrated hydraulic apparatus that
generates frequency-dependent changes in longitudinal stiffness.
53
Our goal is to make rail vehicles safer, more comfortable and more efficient.
A major role plays our hydraulic axle-guide bearing known as HALL.
Rossana Cisneros, Sales Support, Freudenberg Schwab Vibration Control.
54
RESEARCH AND DEVELOPMENT
In 2011, the Freudenberg Group expensed a total of
€205.4 million (previous year: €181.3 million) for
research and development, with more than half of this
sum accounted for by the Freudenberg Sealing Technologies, Vibracoustic and Freudenberg Chemical
Specialities Business Groups. During the year under
review, 2,187 associates (previous year: 1,960 associates) were employed in research and development
throughout the Group, with the regional focus in
Germany, where 1,375 associates were employed.
In the Freudenberg Group, the targeted, customerorientated innovation activities of the Business Groups
in the area of research and development are complemented by various strategic elements. The common
goal is significantly boost the share of new products
sales.
Spearheaded by the New Business Development
Division of Freudenberg New Technologies, the Idea
Pool, an initiative for new business ideas, was further
extended in the 2011 financial year. Under the motto
“Your Idea – powered by Freudenberg”, over 200
ideas were collected from associates all over the
Group; these were then assessed, selected and
passed on to the Business Groups and the New
Business Development Division for specific use.
Freudenberg makes specific use of the collaborative
research and development approach supported by
the German government and the EU to solve tasks
relating to several stages of the value chain. This is
done in cooperation with partners from industry and
science where such funding does not reduce the
technical risk but does alleviate the economic risk of
these research and development projects. The German
funding database lists 22 collaborative research and
development projects running until the end of 2011
and beyond involving a total of eight Freudenberg
companies. In addition, a new project with total
funding of approximately half a million euros was
launched in 2011 and is scheduled to run for a threeyear period. Three other projects funded by the EU
were ongoing at Freudenberg in 2011.
Group innovations were recognized with several
awards in 2011. Freudenberg Sealing Technologies
received an award from “Der Deutsche Innovations
preis” initiative for a method to produce the steel
rings used in rubber-metal seals using an innovative
laser welding process rather than stamping. This
reduces steel consumption by up to 70 percent. The
“intelligent plaster” co-developed by Freudenberg
Forschungsdienste KG won two innovation awards –
the Baden-Württemberg “Land of Ideas” Award and
the Rhein-Neckar Region innovation prize. This “smart
plaster” measures organ functions with the help of
light signals in a quick and pain-free process.
Management Report – Research and Development / Human Resources 55
Workforce by regions
[as at Dec. 31, 2011]
North America 6,983
South/Central
America 1,639
EU (excluding
Germany) 8,641
Other European
countries 727
Africa/Australia 456
Asia 7,291
Germany 11,294
HUMAN RESOURCES
In Germany, the headcount rose by 490 associates or
4.5 percent to 11,294.
On December 31, 2011, the Freudenberg Group
employed 37,031 associates (previous year: 34,319),
an increase of 7.9 percent compared with the previous
year. Personnel expenses increased by 6.1 percent to
€1,703.6 million (previous year: €1,605.7 million). Of
these personnel expenses, social security contributions
and costs of pensions and assistance and related
benefits amounted to €346.0 million, representing an
increase of €17.5 million compared with the previous
year.
There was a slight rise in headcount in the South/
Central America region to 1,639 (previous year:
1,614). Africa/Australia remained largely unchanged
at 456 (previous year: 453). The headcount in the
Asia region rose to 7,291 (previous year: 5,868) on
the back of strong regional growth.
In light of continued dynamic growth in all regions, the
headcount increased, particularly in North America,
where the number of associates rose to 6,983 (pre
vious year: 6,404), the European Union (excluding
Germany), where the number of associates increased
to 8,641 (previous year: 8,537) and in the Other
European countries region, where the number of
associates went up to 727 (previous year: 639).
In 2011, 185 young people began their training at
Freudenberg‘s German companies. In total, 532
people were training at Freudenberg in Germany as
at December 31, 2011. The spectrum ranges from a
two-year commercial or technical apprenticeship to
dual studies at a university of cooperative education.
Freudenberg has acquired a reputation for the high
standard of its training, as is confirmed by the fact
that companies located in the vicinity of Freudenberg
operations send their young people to Freudenberg
for training.
56
Investments in environmental protection and occupational safety
Expenses including integrated technology and non-capitalized
expenditure (E million)
40
31.8
26.6
20.3
20
13.2
9.4
8.5
9.1
7.5
9.0
3.3
2007
RESPONSIBLE CONDUCT
Environmental protection, occupational health and
safety and sustainability
Continuous improvements in the areas of environmental protection, occupational health and safety were
intensified. The overriding priorities are preventing all
accidents, preventive health care and reducing the
environmental impact of Freudenberg‘s business
activities.
The Group‘s “Responsible Conduct” guidelines
describe what sustainability means at Freudenberg
and empower associates to act accordingly. The
Business Principles and Guiding Principles of the
Freudenberg Group, together with the “Responsible
Conduct” guidelines lay the foundation for actions
and conduct in the company.
The sustainable use of resources – for example in
building and modernizing buildings and in the manufacture of products and their use by customers – is an
important element of this sustainability policy and was
again actively fostered in 2011. Freudenberg Politex
Nonwovens is the largest processer of recycled PET
flakes in the European construction industry, recycling
over one billion post-consumer PET bottles at its two
Italian plants. Freudenberg Nonwovens‘ Lutraflor ®
product for automotive carpets won the Innovation &
Sustainability award in the nonwoven roll good category at the INDEX nonwovens exhibition in Geneva.
It is based on recycled material and sets new standards in the industry. New products at Freudenberg
Household Products undergo an evaluation process
during the product development phase that factors in
sustainability aspects. New products must demonstrate a better sustainability performance than their
predecessors.
2008
2009
2010
Investments in
occupational
safety
Investments in
environmental
protection
2011
Investments
In the year under review, €31.8 million was invested
in occupational health and safety, €18.6 million more
than in the previous year (€13.2 million). Investments
in environmental protection amounted to €9.0 million
(previous year: €7.5 million). The share of investments
in environmental protection and occupational safety
in total investments in intangible assets, property, plant
and equipment increased to 13.5 percent (previous
year: 7.7 percent).
Management systems
The introduction of management systems relating
to occupational health and safety (OHSAS 18001)
and environmental protection (ISO 14001 or EMAS)
continued in the 2011 financial year. 155 of the
Freudenberg Group‘s 185 production facilities
(84 percent) now operate an occupational health
and safety management system pursuant to OHSAS
18001 and 147 Freudenberg Group sites (80 percent)
operate an environmental protection management
system pursuant to ISO 14001 or EMAS.
Energy management
Many site projects and Business Group initiatives
oriented to the Freudenberg “Responsible Conduct”
guidelines focused on sustainable energy use with a
view to reducing the environmental impact of business
activities. Freudenberg Politex Nonwovens addressed
heat recovery measures during the energy-intensive
cleaning stages of PET bottle recycling. Freudenberg
Nonwovens also gave priority to heat recovery, optimizing steam generators and switching from oil to
natural gas as an energy source. Freudenberg Real
Estate Management implemented a constant stream of
projects aimed at the energy-efficient modernization
of existing buildings. Energy managers have begun
their work at many Business Groups and initiated
numerous improvements to existing plant such as
heating systems, compressors, ventilation and steam
generation units.
Management Report – Responsible Conduct 57
Accident rate
[LDI rate]
10
7.2
5.4
5
4.2
2007
Preventive health care
An annual health statistics survey was introduced to
encourage preventive health care. The preventive
health management approach was intensified.
Business Groups introduced their own instruments to
promote the health of their associates. Freudenberg
Sealing Technologies, for example, prepared ergonomic summaries of health risks in production with a
view to preventing ergonomic risks.
Environmental protection key data
In 2011 Freudenberg again used 1.8 million megawatt hours (previous year: 1.8 million megawatt
hours). The break-down by sources of energy is as
follows:
utsourced energy supplies (power, steam and
O
district heat generated outside the Freudenberg
Group; 1.08 million megawatt hours)
Natural gas (0.64 million megawatt hours)
Fuel oil (0.04 million megawatt hours)
This energy consumption of 1.8 million megawatt
hours translates into costs totaling approximately
€125.9 million. Energy costs accounted for 2.1 percent of total sales (previous year: 2.3 percent).
There were three events with a significant environmental impact in 2011 (previous year: three events): A fire
occurred in an outbuilding used to store seals at the
Dichtomatik site in Hamburg. The main building where
most of the goods are stored was not affected.
A fire broke out on a phosphating line at the
Freudenberg Technical Products LP site in North
Shields in England. No one was injured.
There was an infringement of the threshold for chemical oxygen demand in the wastewater treatment plant
in Weinheim caused by external tenants. The adjacent
river was not affected.
2008
2009
4.0
2010
3.6
2011
Occupational safety key data
As a consequence of numerous activities and measures at all levels of the company and as part of the
“We all take care” environmental protection and
occupational safety initiative, the total number of
accidents resulting in more than one day‘s absence in
2011 declined to 136 (previous year: 142) at a
7.9 percent increase in headcount. The corresponding
LDI rate (accidents ≥ 1 day‘s absence per 1,000
associates) improved to 3.6 (previous year: 4.0).
Referred to one million working hours, the rate at
Freudenberg therefore improved from 2.3 to 1.9. The
already low accident rate was thus lowered further.
The number of hours lost through accidents increased
by 24 percent to 21,025. The number of serious
accidents rose from ten to eleven including one fatal
road accident during company service.
58
Social responsibility
The Freudenberg Group sees its social responsibility
as an integral part of its corporate governance. The
Group‘s “Responsibility” Guiding Principle states:
“Our company and its family shareholders together
are committed to protecting the environment and
being responsible corporate citizens in all countries
and communities where we do business …”
In the 2011 financial year, many companies, sites and
associates around the world again engaged in local
projects and initiatives providing concrete aid with the
support of the Freudenberg Group in the spirit of
responsible corporate citizenship.
Japan was hit by a severe earthquake and tsunami on
March 11, 2011. Given the scale of the disaster it was
almost a miracle that none of the associates of
Freudenberg‘s partner companies NOK Corporation
and JVC or their families was seriously injured. 620
families of NOK associates were affected; their homes
were either completely destroyed or seriously damaged and in need of repair.
Freudenberg associates all over the world showed
great creativity in their initiatives to help the affected
NOK associates and collected €219,000 within a
very short space of time. The Freudenberg Group
doubled this sum, presenting NOK with a donation
check as a sign of personal solidarity with the victims
and a symbol of the close ties with the Japanese
partner companies.
Some examples of the long-term orientation of local
projects are described below:
In 2011, a further 52 young people completed their
training at the non-profit training center opened in
2009 in Nagapattinam in the Indian state of Tamil
Nadu south of Chennai and found employment.
In total, 136 young people have so far made a suc-
cessful start to their working lives. The Nagapattinam
region, with a population chiefly comprising lowincome agricultural workers and fishermen, was
hardest hit by the tsunami in 2004. To give the young
people in the area a sustainable basis for a better
future and to meet the above-average need for highquality training, the training center gives a maximum
of 130 young people the opportunity to complete
dual study courses that are unique in India to train as
welders, plumbers, engine mechanics and machine
fitters. Once they have completed their training, the
young people stand a good chance of earning their
own living while helping to improve the region‘s
infrastructure.
An elementary school was rebuilt with Freudenberg‘s
help and opened in 2009 in Haijin, a town in
Sichuan province, China, almost completely destroyed
by an earthquake in May 2008. The new building
provides some 300 students with the right setting for
a successful start to their education. The 2011 oneweek summer school project was again a big success.
Over 50 Freudenberg associates were involved in the
project and taught the children English, Chinese
culture and sport.
In the 2011 financial year, 36 young people gathered
valuable experience in a foreign country under
Freudenberg‘s TANNER youth exchange program.
Since the program was launched, over 800 children
of associates have spent time with host families at
Freudenberg locations all over the world and gained
a first-hand insight into a different culture.
Freudenberg Stiftung (www.freudenbergstiftung.de) is
the largest partner of the Freudenberg Group. In
keeping with its statutes, earnings from the foundation
are used to promote science and education, and to
strengthen peaceful coexistence in society. The work
of the foundation focuses on children and young
people. All projects seek to integrate these groups in
society. The projects are always motivated by a
Management Report – Responsible Conduct 59
s pecific need for action which is either drawn to the
direct attention of the Foundation or stimulated by
scientific research: Young people from immigrant
families who cannot find a vocational training opportunity, children who find school difficult because of
their lack of German language skills, right-wing
extremist youth groups, small business entrepreneurs
who cannot find advice or support from existing
institutions, or schools wishing to open their doors to
extra-curricular activities but lacking the necessary
resources.
60
Catheters for modern pain management
Our catheters are very important for modern pain management.
They give the patient greater mobility and shorten hospital times.
Liz Harper, Process Assurance Operator, VistaMed.
61
VistaMed is an Irish manufacturer of medical device components specializing in the development and production of
complex catheter systems. Freudenberg’s Helix Medical Business Group has a 50 percent stake in the company. One
particular specialty is epidural catheters.
The catheters are used in a wide variety of surgical procedures. They are inserted into the body via introducers and
are connected to a drug delivery system, normally a pump. These are often ambulatory systems which allow the patient
full mobility. The catheters are used to dispense pain relief drugs with extremely accurate flow rates and targeting to
the exact area of the body over extended periods of time. This functions very well because the drug feeds through
micro holes drilled at controlled distances and radially dispersed on the catheter. As a result, the patient can receive
pain relief for up to seven days, reducing the need and risk of removing and replacing the catheter.
A second important feature is the strength of the catheter and its resistance to kinking. As the catheter is placed in the
body for extended periods, careful selection of materials is important, and many catheters feature internal profiles to
minimize the risk of blockages whilst maintaining a relatively small size and low cost.
62
POST-REPORTING DATE EVENTS
RISKS AND OPPORTUNITIES
Freudenberg and Trelleborg AB signed the contract
establishing the new 50:50 joint venture on
January 31, 2012, thus laying the foundation for the
partnership between Vibracoustic and the automotive
antivibration business of Trelleborg. The joint venture
is conditional upon approval from the relevant authorities, in particular the European anti-trust authorities.
Freudenberg is exposed to many risks inseparably
associated with entrepreneurial action. A standardized risk management system for the timely identification and control of risks and the prompt initiation of
countermeasures to safeguard the company is in
place across the Freudenberg Group. The system
classifies risks by risk category, likelihood and the
scale of damage. Risk identification is decentralized.
To ensure efficient decentralized risk identification
and assessment, the business units are allocated to
monitoring sections largely identical with their business responsibilities. Group companies supply information on the current status of major risks under a
regular reporting procedure. Risk prevention or risk
reduction measures are listed for each risk; early
warning indicators are updated on a regular basis.
This risk management system is appropriate for the
timely identification of developments that could
threaten the continued existence of the Group.
Freudenberg is also investigating whether to sell the
business of precision molding parts for brake systems
to ContiTech Vibration Control GmbH, Hanover,
Germany. A final decision is expected in the first half
of 2012.
The events reported above did not exercise any
material effect on the net assets, financial position or
results of operations of the Freudenberg Group in the
year under review.
Furthermore, the Risk Committee in particular
addresses the identification, analysis and control of
the financial risk profile of the Freudenberg Group.
This forms the basis for discussing and defining existing processes concerning the methodology and control of financial risk management and for establishing
new processes.
It is not the objective of the risk management system
to avoid all potential risks, but rather to create the
leeway for taking a deliberate decision to enter into
a risk backed by a comprehensive knowledge of the
content and causes. Entrepreneurial action therefore
also involves harnessing opportunities and thus
safeguarding and expanding the company‘s com
petitiveness. The product portfolio structure, the
regional orientation, strategic acquisitions, focused
research and development, as well as various
Management Report – Post-reporting Date Events / Risks and Opportunities 63
strategic initiatives play a key role in achieving this
goal. Entrepreneurial opportunities are included in
the annual planning process and monitored throughout the year. They do not form part of reporting under
the risk management system. Long-term opportunities
for profitable growth are indentified as part of the
strategy process.
As a supplier, Freudenberg is exposed in particular to
the business- and product-related risks and opportunities associated with developments in the sectors the
company serves. The Group‘s broad diversification
with regard to different customer groupings and
regions helps distribute risks. Freudenberg responds to
the fluctuating order behavior of customers with
increased capacity flexibility, supported by active
working capital management.
The business activities of the companies in the
Freudenberg Group are subject to legal provisions
and the risk of litigation. In its capacity as a supplier,
the focus in this context is on product liability risks.
Freudenberg seeks to avoid these risks through extensive quality assurance measures and controls. Specific
quality management strategies such as “Six Sigma”
(zero defects) are deployed to handle quality risks.
Many countries continue to battle with significant
structural problems. Not only the countries in the
eurozone, but also other economies are hit hard by
the financial and debt crisis and have to deal with
higher unemployment and sovereign debt. The economies in Asia, on the other hand, continue to power the
global economy, albeit on a less pronounced scale.
Freudenberg has engaged in Asia for many years and
further extended its activities in this potential growth
market through acquisitions in 2011. The Group
expects developments in this region to be significantly
more dynamic than on markets in Europe, USA and
Japan. Freudenberg will continue to invest in technically challenging market segments such as medical
technology, the oil and gas industry and rail vehicles
with a view to handling cyclical fluctuations more
effectively going forward.
On the procurement market, Freudenberg faces risks
relating to the availability and price of raw materials,
particularly steel, crude oil and rubber. Operating
units respond to these risks with global purchasing
activities and by reviewing the utilization of substitute
raw materials and alternative production processes.
Long-term contracts are concluded where feasible and
meaningful.
The raw materials and processes used for the manufacture of products have a varying impact on the
environment and the workplace. It is Freudenberg‘s
aim to continuously reduce the impact of its business
activities, and the Group is committed to protecting
associates and the environment in the selection and
further development of raw materials, processes and
methods. This applies both to storing and processing
raw materials and to the disposal of production residue. Many product developments are subjected to a
gate process which not only ensures that new products have a better environmental performance than
their predecessors, but also optimizes the use of raw
materials. Over the last five years, for example, there
has been a noticeable reduction in the use of formaldehyde in binders. The company takes a proactive
approach towards complying with the more stringent
legislation introduced in recent years. Starting in
2012, the Oeko-Tex® criteria as valid for the respective product applications will be used as an internal
threshold. The objective is to ban formaldehyde from
Freudenberg products.
Freudenberg‘s “We all take care” initiative launched
in 2002 calls on every associate to engage personally in improving environmental protection and occupational health and safety. The Health, Safety and
Environment Corporate Committee (HSE-CC), the
64
steering committee responsible for these activities,
meets twice a year to discuss these issues at top
management level with the HSE representatives of the
Business Groups. The objective is the further development of environmental protection and occupational
health and safety policy including the relevant HSE
initiatives throughout the Freudenberg Group.
Freudenberg has intensified the internal and external
audit processes relating to fire protection with a view
to increasing awareness for fire protection and, in the
final analysis, to preventing production interruptions
and delivery shortfalls. The findings of the audits are
systematically evaluated and measures implemented
within the relevant Business Groups.
with these guarantees could result in customers filing
claims for damages. Technical risks are primarily
covered by redundant data centers in different geographical locations.
The Freudenberg Group depends on data and information that is chiefly stored electronically and communicated by electronic means. This applies both with
reference to internal business processes and to business processes with customers and suppliers. The
Freudenberg Group responds to IT security risks by
operating an IT security management system oriented
to the ISO/IEC 27001:2005(E) international standard.
The aim of the IT security guidelines issued by the
Management Board is to preserve the confidentiality,
availability and integrity of information, prescribing
the procedures to this end. The Business Groups
conduct an ongoing comprehensive risk monitoring
and implement appropriate measures catering for the
risks in the various business areas and factoring in the
economic situation. An assessment of IT security in the
Group regularly forms part of the annual reporting
procedure. Numerous internal communication measures encourage a heightened awareness on the part
of employees with regard to the correct handling of
information and information processing systems.
Its international business activities mean the
Freudenberg Group is exposed to currency and
interest rate risks. Monitoring of these risks is implemented in the risk management process. Because the
currency risks of the various companies have a partially offsetting effect, the effective foreign exchange
risk for the Freudenberg Group is determined as part
of the foreign exchange management process.
In its capacity as a provider of IT outsourcing services,
Freudenberg offers its customers the standard guarantees regarding the availability and performance of the
hardware made available to them. Failure to comply
As a result of the measures to safeguard liquidity
initiated in recent years Freudenberg remains only
marginally affected by the effects of the financial and
debt crisis in the Western world. The Freudenberg
Group hedges this risk with its solid banking and
Partners‘ financing and its high liquid reserves. The
company has an above-average equity ratio, a stable
level of Partners‘ reserves and comprehensive credit
lines.
Interest rate risks arise from possible changes in the
market rate and can lead to changes in the market
value of fixed interest investments. To reduce interest
rate risks, Freudenberg & Co. makes funds available
to the subsidiaries in the form of loans or via cash
pools. Vice versa, Group companies channel surplus
liquidity to the central finance department. Currency
and interest rate risks are hedged to a meaningful
extent.
Internal directives for Group companies clearly
specify that derivative financial instruments may not
be used for speculative purposes, but only for hedging risks in connection with underlying transactions
and associated financing operations.
Management Report – Risks and Opportunities 65
In view of the general economic situation,
Freudenberg constantly reviews and extends the
present proven risk directives in order to respond
even more effectively to future challenges.
In its rating published in mid-August 2011, the rating
agency Moody‘s reaffirmed Freudenberg‘s credit
worthiness as Baa1 and confirmed the outlook as
“stable”. The Baa1 rating gives Freudenberg very
good creditworthiness at investment grade level.
Companies with this rating standard have comparatively low interest costs because the likelihood of loan
default is significantly lower. For that reason, banks
and other credit institutions charge a lower risk premium.
The objective of the internal control system with reference to the Group accounting process is to establish
an appropriate degree of security to ensure that
financial statements are drawn up in compliance
with the relevant accounting laws and standards by
implementing controls. This system includes measures
intended to ensure complete, accurate and timely
transmission and presentation of information of relevance to the preparation of the consolidated financial statements and the consolidated management
report of the Freudenberg Group. The Freudenberg
Group Management Board bears overall responsibility for the internal control system as it relates to the
Group accounting process.
To this end, Freudenberg has initiated the following
main measures:
The Group Accounting & Controlling Corporate
Function is responsible for compilation of the consolidated financial statements of Freudenberg & Co.
Kommanditgesellschaft as the parent company of the
Freudenberg Group.
The Corporate Function defines binding minimum
requirements regarding reporting content submitted by
the companies and at the same time controls and
monitors the time frame and process requirements for
the consolidated financial statements.
Group Accounting & Controlling is also responsible for
the central administration of changes in shareholding
structures and updates the list of companies included
in the Freudenberg Group consolidation accordingly.
The Freudenberg Group‘s standards for IFRS reporting
as regularly updated form the basis for compiling the
IFRS financial statements of the parent company and of
all domestic and foreign subsidiaries included in the
consolidation.
The necessary information concerning the coordinated
and punctual compilation of the consolidated financial
statements in compliance with the relevant accounting
laws and standards is available to all associates at
Group Accounting & Controlling and in the companies
via the Freudenberg intranet. There are binding instructions for internal coordination and the preparation of
financial statements.
Freudenberg uses a standard software tool from Oracle
for the Group accounting process. This tool is used
throughout the Group worldwide and clearly defines
user rights via an authorization concept on a need-tohave basis and observing the separation of functions.
The system covers both reporting by individual companies and the consolidated financial statements. Additional controls are implemented in the consolidation
process. This process is also supported by a software
tool for the automatic reconciling of balances throughout the Group.
The individual companies have a local internal control
system which is the responsibility of the respective
Business Group. If a Shared Service Center is respon
sible for the financial process, then the internal control
system of the Shared Service Center applies.
66
The Group Accounting & Controlling Corporate
Function provides support for local contact partners
throughout the entire reporting process. The Corporate
Function organizes seminars for associates in the event
of important changes in accounting procedures and IT
applications, thereby guaranteeing a consistently high
standard of reporting.
There is a clear demarcation of tasks between the
department involved in the Group reporting process
and the companies. The separation of functions and
the four-eyes principle are systematically applied.
Complex actuarial reports and evaluations are compiled by specialist service providers or appropriately
qualified associates.
The Group auditor and the auditors of the various
consolidated companies review the functionality and
compliance of the Group reporting process as part of
the auditing procedure. Suggestions for improvement
are published regularly in a management letter.
In addition, the functionality and compliance of processes of relevance to financial reporting are monitored regularly under an internal auditing process.
The entire package of processes, systems and controls
adequately ensures that the Group reporting process is
in line with IFRS and other regulations and laws of
relevance to financial reporting and is reliable.
The Freudenberg Group attaches considerable importance to its research and development activities. By
continually expanding these activities, the Group not
only combats possible risks arising from rapid technological change, but also safeguards its competitive
edge through its technology leadership and harnesses
new opportunities in growth markets. Central topics
are electro-mobility, the further development of the
strategic growth fields of medical technology, rail
vehicles and the oil and gas industry as well as
resource- and energy-saving manufacturing processes.
The analysis of present risks concludes there are no
risks which could pose a threat to the continued existence of the Freudenberg Group.
Freudenberg largely implements the rules of the
German Corporate Governance Code on a voluntary
basis. Restrictions relate in particular to the publication of individual executive compensation for the
Management Board and the Board of Partners.
Management Report – Risks and Opportunities / Outlook 67
OUTLOOK
The overall economic trend in Germany and worldwide remains relatively robust – in spite of the sovereign debt crisis and uncertainty on financial markets.
However, we expect global economic growth momentum to slacken further. Business in the first half of 2012
is expected to be satisfactory in light of the high level
of orders on hand in all our Business Areas combined
with the anticipated stable economic situation. In
particular our new Business Groups Helix Medical
(medical technology) and Freudenberg Oil & Gas will
enjoy above-average growth. Developments in the
second half of the year will depend to a significant
extent on the impact of the sovereign debt crisis and
the associated austerity measures in southern eurozone states and the USA on the real economy.
For the eurozone, our largest sales region, we expect
growth to stagnate in almost all member states. Gross
domestic product (GDP) growth rates in the individual
countries are likely to be between 0 and 0.5 percent,
in Germany between 0.5 and 1.0 percent. We anticipate a further decline in GDP in the European Mediterranean region. The USA is only recovering slowly
from the economic crisis, although the upturn has
slightly gathered momentum. We expect growth there
to be of the order of 2.0 percent. Economic growth in
China (7.5 percent) and India (6.5 percent) will be
noticeably slower than the previous year.
Risks arise from price trends and the availability of
raw materials essential to Freudenberg‘s business.
Following at times dramatic price rises in 2011, raw
material prices did stabilize towards the end of the
year, although we expect price volatility to remain
high. We are responding to this with a further
increase in productivity, measures to reduce the
consumption of materials and targeted purchasing
initiatives. The most recent substantial increase in the
price of oil will curb economic developments.
Freudenberg is to establish a European public company under the roof of Freudenberg & Co. in 2012,
thus laying the foundation for the envisaged stream
lining of the new company law structures. This will
lead to lower fixed costs in subsequent years and
therefore have a positive effect on earnings.
We are cautiously optimistic about the outlook for
the next two financial years. Our forecast is based on
the assumption that the sovereign debt crisis does not
expand and that the countries affected show discipline in pruning their budgets. We expect to see
growth in all Business Areas of the Freudenberg
Group.
68
Transferring proven processes
to the aerospace industry
For decades, cadmium coating systems were state-of-the-art for aircraft landing gear components. The main advantages of these systems lie in their excellent corrosion protection properties and their low tendency to crack formation,
even under the most extreme temperature and pressure fluctuations. There is, however, one big drawback to cadmium
coatings: They are very toxic and the aim therefore is to replace them as quickly as possible. Legislation plus voluntary
commitments by the aerospace industry are aimed at abolishing the use of cadmium in the aeronautics sector by 2015.
The search for a suitable replacement for cadmium coatings came up with a solution from the automotive industry,
where zinc-nickel coatings in particular are used to prevent corrosion and crack formation. The Freudenberg company
SurTec is a technology leader in this field and supplies internationally renowned companies in the automotive business.
Transferring standard processes from other industries is especially interesting for the aerospace sector because reliability and long-term safety are the top priority. As a result, the history of such methods can be incorporated in decisions
to roll out new production processes. Following exhaustive technical tests, well-known aircraft landing gear manufacturers have opted in favor of SurTec’s technologically challenging zinc-nickel coating systems.
69
In order to meet the specific needs of our customers, we adapted a proven process from the automotive industry to suit the requirements of the aircraft sector.
Dr. Torsten Koerner, Head of Marketing Europe, SurTec (Freudenberg Chemical Specialities).
70
70
71
Consolidated Financial Statements
72
73
74
75
76
77
72
[€ million]Note
Dec. 31, 2010
Dec. 31, 2011
ASSETS
Intangible assets
(1)
566.0
582.6
Tangible assets
(2)
1,579.3
1,626.6
Investment properties
(3)
23.0
22.3
Investments valued at equity
(4) 656.4710.5
Other financial assets
96.4
84.7
Financial assets
752.8
795.2
Other non-current assets
(6)
54.2
60.8
Deferred taxes
(19)
79.0
68.1
Non-current assets
3,054.3
3,155.6
Inventories
(5) 659.7771.6
Trade receivables
838.4
926.6
129.9
135.0
Current receivables
(6)
968.3
1,061.6
Current tax assets
16.7
14.4
Securities and cash at bank and in hand
(7)
647.6
724.0
Current assets
2,292.3
2,571.6
Non-current assets held for sale and disposal groups (8)51.77.1
5,398.3
5,734.3
EQUITY AND LIABILITIES
Partners’ capital
450.0
450.0
Retained earnings
1,830.6
2,092.0
Partners’ equity
2,280.6
2,542.0
Non-controlling interests
279.5
299.4
Equity
(9) 2,560.12,841.4
Provisions for pensions
(10) 409.1412.1
Other long-term provisions
(11)105.097.6
Long-term provisions
514.1
509.7
Financial debt
681.8
697.5
Other non-current liabilities
49.1
62.3
Liabilities
(12)
730.9
759.8
Deferred taxes
(19)
129.2
134.8
1,374.2
1,404.3
Other current provisions
(11)
362.3
328.8
Current tax liabilities
78.7
77.6
Financial debt
267.6
285.5
Trade payables
515.9
550.0
Other current liabilities
226.2
246.3
Liabilities
(12)
1,009.7
1,081.8
Current liabilities
1,450.7
1,488.2
Liabilities in connection with non-current assets
held for sale and disposal groups
(8)13.30.4
5,398.3
5,734.3
Financial Report – Consolidated Financial Statements 73
[€ million]Note
20102011
Sales
(13)
Cost of sales
(14)
Gross profit
Selling expenses
Administrative expenses
Research and development expenses
(15)
Other income
(16)
Other expenses
(17)
Profit from operations
Income from investments in associated companies
Other interest and similar income
Interest and similar expenses
(18)
Other investment result
Financial result
Profit before income taxes
Income taxes
(19)
Consolidated profit
Profit attributable to Freudenberg
Profit attributable to non-controlling interests
(20)
5,481.4
- 3,545.9
1,935.5
- 855.3
- 490.2
-177.9
74.5
- 56.0
430.6
45.3
9.6
- 48.2
4.4
11.1
441.7
-120.0
321.7
286.5
35.2
6,006.5
- 3,907.5
2,099.0
- 923.5
- 498.6
- 201.5
95.0
- 65.0
505.4
44.3
13.1
- 51.8
0.5
6.1
511.5
-153.3
358.2
320.0
38.2
74
[€ million]
20102011
Consolidated profit
321.7
Other comprehensive income:
Exchange rate differences
238.6
Changes in value of securities
17.3
Changes in value of derivative financial instruments
0.5
Share in other comprehensive income of associated companies
consolidated by the equity method
-11.8
Miscellaneous comprehensive income
- 5.0
Income tax relating to components of other comprehensive income
- 0.5
Other comprehensive income for the year
239.1
Total comprehensive income for the year
560.8
Of which attributable to Freudenberg
499.5
Of which attributable to non-controlling interests
61.3
358.2
56.8
- 7.2
2.5
- 38.1
10.8
- 3.0
21.8
380.0
335.1
44.9
[€ million]Note
20102011
Current income taxes
Depreciation, amortization and impairment losses
on non-current assets less write ups
Profit or loss on disposal of intangible, tangible and financial assets
Other expenditure and income not affecting payments
Changes in inventories, trade receivables and other assets
Changes in trade payables and other liabilities
Changes in provisions
441.7
-126.0
511.5
-140.6
254.5
- 4.0
- 36.9
- 204.7
117.5
26.0
247.7
- 9.7
- 35.5
- 216.0
66.0
- 41.5
Cash flow from operating activities (21) 468.1381.9
Cash inflow from disposals of tangible and intangible assets
25.8
43.0
Cash outflow from acquisitions of tangible and intangible assets
- 240.1
- 307.4
Cash inflow/outflow from investment properties
-1.1
- 0.6
Cash inflow from disposals of financial assets
10.3
7.8
Cash outflow from acquisitions of financial assets
- 24.5
- 3.2
Cash inflow/outflow from disposal/acquisition
of consolidated companies
- 40.2
- 3.1
-269.8
-263.5
Payments to Partners/non-controlling interests
- 73.3
- 69.6
Cash inflow from the take-up/cash outflow
from the repayment of financial debts
1.1
21.4
Cash inflow from disposals of loans
and securities held as non-current assets
2.0
2.3
Cash outflow from acquisitions of loans
and securities held as non-current assets
- 3.3
- 3.3
Cash flow from financing activities
- 73.5- 49.2
Changes in cash and cash equivalents with effect on payments
124.8
69.2
Changes in cash and cash equivalents from changes
in consolidated group
4.5
11.7
Changes in cash and cash equivalents from exchange rate differences
15.2
-4.5
Cash and cash equivalents at beginning of year
503.1
647.6
Cash and cash equivalents at end of year
647.6
724.0
Securities and cash at bank and in hand
647.6
724.0
76
Non-controlling
interests
Equity
Status Jan. 1, 2010
450.0
1,381.6
Consolidated profit
286.5
Appropriation of profit
- 50.5
Other comprehensive income
213.0
Status Dec. 31, 2010
450.0
1,830.6
Consolidated profit
320.0
Appropriation of profit
- 73.7
Other comprehensive income
15.1
450.0
2,092.0
Partners’ equity
Retained earnings
[€ million]
Partners’ capital
1,831.6
286.5
- 50.5
213.0
2,280.6
255.1
35.2
- 36.9
26.1
279.5
2,086.7
321.7
- 87.4
239.1
2,560.1
320.0
- 73.7
15.1
2,542.0
38.2
- 25.0
6.7
299.4
358.2
- 98.7
21.8
2,841.4
General
The Freudenberg Group is an international industrial group mainly active as a supplier to the automotive,
mechanical engineering, textile and clothing industries throughout the world. The Group’s portfolio also includes
mechanical household cleaning and laundry care products.
The consolidated financial statements of Freudenberg & Co. Kommanditgesellschaft (hereafter
Freudenberg & Co.), Weinheim, for 2011 have been drawn up in accordance with the International Financial
Reporting Standards (IFRS) as they are to be applied in the European Union (EU) as of the date of the statement
of financial position (December 31, 2011). Comparative figures for the previous financial year were based on
the same principles.
Freudenberg & Co. has availed itself of the right as laid down in Sec. 315a (3) HGB (Handelsgesetzbuch,
“German Commercial Code”) to set up its consolidated financial statements in accordance with IFRS.
The application of the following new and amended standards and interpretations (IFRIC) was binding for the
first time for the 2011 financial year:
– IFRS 1:Amendment to IFRS 1 – Limited Exemption from Comparative IFRS 7 Disclosures for
First-time Adopters
– IAS 24:
IAS 24 (revised) – Related Party Disclosures
– IAS 32:
Amendment to IAS 32 – Financial Instruments: Presentation: Classification of Rights Issues
– IFRIC 14:
Amendment to IFRIC 14 – Prepayments of a Minimum Funding Requirement
– IFRIC 19:
Extinguishing Financial Liabilities with Equity Instruments
– Various standards: Improvements to IFRS (issued May 2010)
78
The application for the first time of the amended standards and interpretations listed above had no significant
impact on the presentation in the consolidated financial statements.
The IASB and the IFRIC have published additional standards, interpretations and amendments the application of
which was not yet binding for the 2011 financial year. The application of these standards, interpretations and
amendments is subject to endorsement by the EU which, in most cases, is still pending.
Standards/interpretations
Application
binding from*
Endorsed
by EU
Probable
impact
IFRS 1
Amendment to IFRS 1 – Severe Hyperinflation and Removal of Fixed Dates for
First-Time Adopters
July 1, 2011
No
None
IFRS 7
Amendment to IFRS 7 – Disclosures:
Transfers of Financial Assets
July 1, 2011
Yes
None
Amendment to IFRS 7 – Disclosures:
Offsetting Financial Assets and Financial
Liabilities
January 1, 2013
No
No significant impact
Financial Instruments: Classification and
Measurement
January 1, 2015
No
Changes in the classification and measurement
of financial assets, especially equity instruments;
it is not yet possible to assess the scope of the
effects.
IFRS 9
IFRS 10
Consolidated Financial Statements
January 1, 2013
No
IFRS 11
Joint Arrangements
January 1, 2013
No
New definition of joint venture and joint
arrangement; accounting for joint ventures in
accordance with IAS 28 in future; it is not yet
possible to assess the scope of the effects.
IFRS 12
Disclosures of Interests in Other Entities
January 1, 2013
No
On the basis of the information currently
available, more comprehensive disclosures will
probably be required in the notes.
January 1, 2013
No
July 1, 2012
No
Separate presentation of items of other comprehensive income which are recycled or not
recycled in the income statement; no significant
impact.
IFRS 13
Fair Value Measurement
IAS 1
Amendment to IAS 1 – Presentation of
Items of Other Comprehensive Income
IAS 12
Amendment to IAS 12 – Recovery of
Underlying Assets
January 1, 2012
No
None
IAS 19
Amendment to IAS 19 – Employee
Benefits
January 1, 2013
No
Full disclosure of net pension obligations;
immediate recognition of actuarial gains and
losses in equity; determination of interest cost
and income using uniform interest rate on the
basis of net pension obligations; effect on pension plan assets, equity, provisions for pensions
and pension expenses
IAS 27
Separate Financial Statements
January 1, 2013
No
None
IAS 28
Investments in Associates and Joint
Ventures
January 1, 2013
No
Accounting for joint ventures by the equity
method; it is not yet possible to assess the scope
of the effects.
IAS 32
Amendment to IAS 32 – Offsetting Financial Assets and Financial Liabilities
January 1, 2014
No
IFRIC 20
Stripping Costs in the Production Phase
of a Surface Mine
January 1, 2013
No
None
* From this date or for reporting periods beginning after this date
The Group currency is the euro. All amounts are indicated in million euros.
Consolidated group
Apart from Freudenberg & Co., 88 (previous year: 86) German and 325 (previous year: 296) foreign companies in which Freudenberg & Co. directly or indirectly holds a majority of the voting rights or the financial and
business policy of which Freudenberg & Co. has the right to determine in accordance with articles of association, statutes or contracts are fully consolidated in the consolidated financial statements.
In addition, one (previous year: one) German and 26 (previous year: 29) foreign companies have been consolidated by the pro-rata method. Their overall effect on the consolidated financial statements is not significant.
In accordance with the stipulations concerning associated companies, 12 (previous year: seven) foreign companies are shown in the consolidated financial statements. In the previous year, two German companies were also
included.
All Group companies, joint venture companies and interests in associated companies are listed under
“Shareholdings of the Freudenberg Group“.
In the year under review, 43 companies were included in the consolidated financial statements as fully consolidated affiliates for the first time. 12 companies which had previously been fully consolidated were no longer
included as fully consolidated affiliates due to sale, liquidation or merger. The timing of the initial consolidation
was determined on the basis of the date when the Freudenberg Group started to exercise financial control.
In the year under review, 27 companies of the SurTec Group were included in the consolidated group for the
first time.
In order to expand its presence in the Asia-Pacific region, Freudenberg Household Products acquired the shares
of 13 companies of the Trade & Investment in Asia-Pacific (TIA) Group with effect from October 1, 2011.
With effect from January 1, 2011, Freudenberg disposed of its cylinder head and exhaust gasket business for
OEMs and the vendor-specific aftermarket to ElringKlinger AG, Dettingen/Erms.
With effect from June 30, 2011 the actuator business was sold to Eagle Industry Co. Ltd., Tokyo, Japan.
Freudenberg disposed of its 50 percent stake in Freudenberg Vitech L.P., Hopkinsville, U.S.A., a company
previously consolidated by the pro rata method, with effect from December 31, 2011.
Freudenberg also disposed of its stake in Unimatec Chemicals Europe GmbH & Co. KG, Weinheim,
previously included in the consolidated financial statements as an associated company, with effect from
December 30, 2011.
In 2011, the balance amount expended on acquisition activities and the amount received as a result of
disinvestment activities was €3.1 million (previous year: €40.2 million).
80
The changes in the consolidated group had the following effects on the net assets, financial position and results
of operations:
[€ million]
Non-current assets
Current assets
Current liabilities
Sales
Dec. 31, 2010 Dec. 31, 2011
47.1
35.3
18.1
21.8
5.0
9.6
61.8
13.4
292.415.2
Consolidation methods
The acquisition costs of the shareholdings concerned are set off against the pro-rata share in the fair value of
the equity capital of the companies concerned as of the date of acquisition according to the purchase method.
Assets and liabilities are also included in the consolidated statement of financial position at their fair values as
of the acquisition date. Any remaining differences are shown as goodwill.
Intercompany profits and losses, sales, expenses and income and all receivables and payables between consolidated companies are eliminated. Deferred taxes are set up on consolidation transactions affecting net income.
Joint venture companies are consolidated on a pro-rata basis using the same principles.
The equity values calculated for associated companies are based on the purchase method. In such cases,
adjustments have been made to individual accounts to reflect material differences from the measurement
methods used in the consolidated financial statements.
The differences arising from the acquisition of shareholdings in associated companies form part of the book
value of the shareholding in the associated company concerned. Amortization is not recognized on goodwill in
subsequent periods. An impairment test is carried out on the book value of the shareholding as a whole.
Accounting and measurement principles
The consolidated financial statements are based on the annual accounts of Freudenberg & Co. and the
consolidated companies. All the annual accounts concerned were drawn up as of December 31, 2011.
In accordance with IAS 27, the accounts of the individual companies to be included in the consolidated
financial statements have been drawn up applying uniform accounting and measurement methods.
Acquired intangible assets are capitalized at acquisition cost and amortized on a systematic basis.
Amortization is based on the following useful lives:
Software
Patents and licenses
3 to 8 years
depending on contract term
An impairment test is carried out on goodwill at least once per year and an impairment loss is shown if the
value of such assets is found to have been impaired.
For the impairment test, the value in use of the cash-generating unit to which the goodwill is allocated is
determined in accordance with IAS 36 on the basis of a five-year plan, applying the discounted cash flow
method. In line with internal management reporting, the cash-generating units are determined on the basis of
the Business Groups of the Freudenberg Group. The discount rates used are based on the WACC (“weighted
average cost of capital”) determined separately for each cash-generating unit. An impairment loss is recognized
if the carrying amount of the cash-generating unit is in excess of discounted future cash flows.
Impairments of capitalized goodwill are shown under other expenses in the consolidated income statement.
Provided that such assets meet the requirements of IAS 38, internally generated intangible assets are carried
as assets at production cost and are amortized on a systematic basis over their useful lives, if their useful lives
are finite.
If the useful life of intangible assets is not considered to be finite, no amortization is effected. An intangible
asset may be regarded as having an indefinite useful life when, based on an analysis of all of the relevant
factors, there is no foreseeable limit to the period over which the asset is expected to generate net cash flows
for the Group.
Tangible assets are capitalized at acquisition or production cost. In the case of assets produced by Group
companies, production cost also includes directly attributable cost as well as pro-rata overheads and
depreciation.
Borrowing costs are capitalized as part of acquisition or production cost in the case of qualifying assets.
Expenditure for repairs and maintenance is generally shown as expenses. Such expenditure is only capitalized
if future economic benefits in connection with such expenditure are probable and the acquisition or production
cost can be reliably measured.
Movable non-current assets and industrial buildings are depreciated over their useful lives. This approach
normally corresponds to straight-line depreciation.
82
Systematic depreciation is determined on the basis of the following useful lives:
Buildings
Machinery and equipment
Other fixtures, fittings and office equipment
max. 50 years
5 to 25 years
4 to 20 years
In addition, an impairment loss is recognized if the fair value less costs to sell or value in use of an asset
falls below the book value. If the impairment of an asset reflected by a write-down in the past is reduced or
eliminated, the impairment loss is reversed. The updated acquisition or production cost represents the upper
limit of measurement in such cases.
Taxable grants and tax-free investment subsidies, normally paid by public bodies, are set off against acquisition
or production cost.
In accordance with IAS 17, tangible assets leased under finance leases are recognized as assets and written
off over their economic useful life if substantially all the risks and rewards associated with the ownership of the
leased asset lie with the lessee. Such assets are carried at the fair value of the leased asset at the inception of
the lease or, if lower, at the present value of the minimum lease payments. A liability of the same amount is
also shown on the statement of financial position.
In the case of operating leases, lease payments are recognized as expenses.
Land and buildings held to earn rentals from third parties are dealt with as investment properties. Such properties are measured at acquisition cost. Financial investments which consist of movable assets and buildings are
depreciated over their useful lives. This approach normally corresponds to straight-line depreciation. As a
general principle, systematic depreciation is calculated on the basis of a maximum useful life of 50 years and
effected on a straight-line basis. The fair value is determined by the discounted cash flow method.
Participations are shown at acquisition cost or, if lower, at fair value.
Shares in associated companies are stated at their updated pro-rata equity plus goodwill if applicable.
Long-term loans are discounted if the amount of such discount is significant.
Inventories are shown at acquisition or production cost or at net realizable value, where this is lower. Inventories
of raw materials and consumables and merchandise are measured by the weighted average cost method.
Production cost includes directly attributable costs as well as production and material overheads and
depreciation.
Receivables and other assets are recognized at amortized cost. Impairments are recognized for individual risks
identified on the basis of analyses which are not covered by credit insurance. Impairments are effected using a
separate account if circumstances become apparent as a result of which certain receivables are subject to risks
in excess of the general credit risk. The amortized cost is approximately equivalent to the fair value of the assets
concerned. Long-term receivables are discounted if the amount of such discount is significant.
In principle, securities carried as non-current or current assets are available for sale. Such securities are therefore recorded at the market value as of the statement of financial position date. Value changes are shown under
equity without an effect on net income.
Cash at bank or in hand is shown at its nominal value. Cash held in foreign currencies is converted using the
exchange rate as of the statement of financial position date.
Non-current assets and groups of assets held for sale are shown separately in the statement of financial position
if they are available for immediate sale in their present condition and the sale of such assets is highly probable
within the next 12 months. Such assets are shown at the lower of fair value less costs to sell and book value.
Systematic depreciation is not recognized on such assets from the date of reclassification. Liabilities included in
a disposal group are shown separately under liabilities.
The requirement for the reversal of the impairment of assets has been complied with both for non-current and for
current assets. Unless individual standards call for a different measurement, the updated acquisition or production cost represents the upper limit of measurement in such cases.
The criteria for the distinction between equity instruments and financial liabilities are stated in IAS 32. According to IAS 32.16 and 17, a financial instrument cannot be considered to be an equity instrument if the financial
assets received by the reporting entity place it under a potential obligation to make payments. If the reporting
entity does not have an unconditional right to refuse making payments, the financial instrument must be classed
as a financial liability under IAS 32.19. In view of the special nature of the provisions in its Partnership Agreement and the structure of the Partners in the Freudenberg Group, it can be stated that Freudenberg & Co. has
an unconditional right to refuse payment in the event of termination or withdrawal by a Partner. An obligation of
Freudenberg & Co. to make payments which could be detrimental to the classification of its capital as equity
instruments could only arise in a highly improbable extreme case and therefore need not be considered in
accordance with IAS 32.25. The statement of financial position of Freudenberg & Co. as at December 31 in
accordance with IFRS therefore shows the Partners’ capital and non-distributable Partners’ reserves as equity.
Provisions for pensions and similar obligations are determined by the projected unit credit method using
actuarial principles, taking into account future income and pension trends.
Deferred taxes are calculated on temporary differences between the book values of assets and liabilities in
the consolidated statement of financial position and their tax bases, taking into account the applicable national
income tax rates valid on the date of realization and already in force on the statement of financial position
date. In addition, deferred tax assets are recognized for tax losses carried forward if it is likely that such losses
will be usable by the company. Deferred tax assets and liabilities are only set off against each other in cases
where the income taxes concerned are levied by the same tax authority and concern the same period.
84
Other provisions allow for all recognizable risks and uncertain obligations towards third parties which will
probably result in an outflow of resources which can be reliably estimated. Such provisions are recognized at
their most probable settlement value and discounted if the amount of such discount is significant. Reimbursement
rights in this connection are shown separately under other assets.
Liabilities are shown at their face value or at the repayment or settlement value, where this is higher.
Non-current liabilities are discounted if the amount of such discount is significant.
Sales and other income are recognized at the fair value of the consideration received or receivable when the
services are performed or the goods or products concerned are delivered.
The consolidated statement of cash flows is broken down into cash flows from operating, investing and financing activities. Effects arising from changes in the consolidated group and the effects of exchange rate differences have been eliminated from the consolidated statement of cash flows. The influence of these effects on
cash and cash equivalents is indicated separately.
In connection with the drawing-up of the consolidated financial statements, it has been necessary to make
assumptions and estimates concerning certain assets and liabilities (for example, as regards the useful life of
assets with a finite useful life or the parameters for determining pension liabilities). Actual future figures may
deviate from these estimates.
Currency translations
The financial statements of all companies included in the consolidated financial statements which are not located
in the eurozone are drawn up in the national currencies concerned. This is the currency of the primary economic
environment in which the companies concerned operate (concept of functional currency).
In the accounts of individual companies, foreign-currency receivables and liabilities are translated at the exchange rates as of the date of the statement of financial position.
Goodwill created as a result of acquisitions on or after March 31, 2004, is carried as an asset of the economically independent foreign companies concerned in their respective functional currencies.
The financial statements of companies located in hyperinflationary economies are restated in accordance with
IAS 29.
In the consolidated financial statements, the financial statements of all companies not located in the eurozone are
translated in accordance with the following principles:
Statement of financial position items are translated at the middle rate as of the date of the statement of
financial position.
Income statement items are translated at average annual exchange rates.
Differences arising from the use of different exchange rates are recognized in equity without an effect on net
income.
The same principles are used in the case of associated companies consolidated by the equity method.
The exchange rates of currencies used for currency conversion which are material to the annual financial statements developed as follows:
Country
Currency
Brazil
BRL
China
CNY
India
INR
Japan
JPY
Turkey
TRY
USA
USD
Closing rate
Dec. 31, 2010 Dec. 31, 2011
Average rate
2010
2011
2.2102 2.4158
2.32372.3343
8.7697 8.1485
8.93299.0285
59.6528 68.9828
60.404165.5838
108.5936 100.1168
115.2190111.2940
2.0625 2.4424
1.99752.3533
1.3282 1.2938
1.32131.3996
Differences arising from the use of different exchange rates compared with the previous year are shown in the
statement of changes in intangible and tangible assets with respect to non-current assets and in the consolidated
statement of comprehensive income with respect to equity.
86
(1) Intangible assets
Total
Payments made
on account
Goodwill
[€ million]
Concessions
and licenses
Changes in intangible assets from January 1 to December 31, 2010
ACQUISITION/PRODUCTION COST
Status Jan. 1, 2010
384.2
347.2
8.0
739.4
Changes in consolidated group
21.7
10.2
0.0
31.9
22.9
15.9
0.0
38.8
Additions
17.9 0.0 3.221.1
Write-ups/revaluations
0.0 0.00.0 0.0
Disposals
- 5.8
0.0
- 0.3
- 6.1
Reclassifications
6.1
- 0.3
- 6.7
- 0.9
447.0
373.0
4.2
824.2
AMORTIZATION
Status Jan. 1, 2010
198.5
26.7
0.0
225.2
-1.9
- 0.1
0.0
- 2.0
5.4
- 0.3
0.0
5.1
Additions – systematic
35.4
0.0
0.0
35.4
Impairment losses
0.0
0.0
0.0
0.0
0.0 0.00.0 0.0
Disposals
- 5.0
0.0
0.0
- 5.0
Reclassifications
- 0.5
0.0
0.0
- 0.5
231.9
26.3
0.0
258.2
Book value Dec. 31, 2010
215.1
346.7
4.2
566.0
185.7
320.5
8.0
514.2
Total
Payments made
on account
Goodwill
[€ million]
Concessions
and licenses
Changes in intangible assets from January 1 to December 31, 2011
Status Jan. 1, 2011
447.0
373.0
4.2
824.2
23.8
15.3
0.0
39.1
1.7
1.2
0.0
2.9
Additions
19.1 0.010.2 29.3
0.0 0.00.0 0.0
Disposals
-18.1 0.0 0.0-18.1
Reclassifications
1.0
0.0
- 0.6
0.4
474.5
389.5
13.8
877.8
AMORTIZATION
Status Jan. 1, 2011
231.9
26.3
0.0
258.2
3.8
0.0
0.0
3.8
1.5
0.8
0.0
2.3
39.0
0.0
0.0
39.0
Impairment losses
0.0
0.0
0.0
0.0
0.0 0.00.0 0.0
Disposals
- 8.2
0.0
0.0
- 8.2
Reclassifications
0.1 0.00.0 0.1
268.1
27.1
0.0
295.2
206.4
362.4
13.8
582.6
215.1
346.7
4.2
566.0
88
(2) Tangible assets
Total
Work in progress
Payments made
on account
Other fixtures, fittings
and office equipment
Machinery and
equipment
[€ million]
Land and buildings
Changes in tangible assets from January 1 to December 31, 2010
Status Jan. 1, 2010
919.3
2,233.5
774.6
6.0
32.5
3,965.9
0.9
6.4
- 2.6
0.3
2.3
7.3
33.5
81.5
15.3
0.4
1.3
132.0
Additions
41.756.959.915.645.0
219.1
0.00.00.00.00.00.0
Disposals
-11.4
- 85.7
- 28.2
- 0.4
-1.4
-127.1
Reclassifications
-19.8
- 8.6
3.6
- 6.9
- 24.6
- 56.3
964.2
2,284.0
822.6
15.0
55.1
4,140.9
DEPRECIATION
Status Jan. 1, 2010
407.5
1,443.7
547.9
0.0
0.7
2,399.8
- 4.5
3.0
- 4.0
0.0
0.0
- 5.5
13.0
50.8
10.9
0.0
0.0
74.7
28.9
117.7
70.5
0.0
0.0
217.1
Impairment losses
0.01.00.10.00.01.1
- 0.1
- 0.6
0.0
0.0
0.0
- 0.7
Disposals
- 7.9
- 74.9
- 23.9
0.0
0.0
-106.7
Reclassifications
- 5.6
- 8.4
- 3.7
0.0
- 0.5
-18.2
431.3
1,532.3
597.8
0.0
0.2
2,561.6
532.9
751.7
224.8
15.0
54.9
1,579.3
511.8
789.8
226.7
6.0
31.8
1,566.1
Total
Work in progress
Payments made
on account
Other fixtures, fittings
and office equipment
Machinery and
equipment
[€ million]
Land and buildings
Changes in tangible assets from January 1 to December 31, 2011
Status Jan. 1, 2011
964.2
2,284.0
822.6
15.0
55.1
4,140.9
12.5
0.0
3.7
0.0
0.0
16.2
6.34.90.90.00.3
12.4
Additions
21.081.765.632.577.2
278.0
0.00.20.00.00.00.2
Disposals
- 21.8
- 83.8
-4 3.6
- 4.2
-1.7
-155.1
Reclassifications
11.0
33.5
12.8
-15.3
- 42.9
- 0.9
993.2
2,320.5
862.0
28.0
88.0
4,291.7
DEPRECIATION
Status Jan. 1, 2011
431.3
1,532.3
597.8
0.0
0.2
2,561.6
3.9
-1.2
3.7
0.0
0.0
6.4
3.86.61.00.00.0
11.4
28.4
113.4
72.2
0.0
0.0
214.0
Impairment losses
0.01.50.30.00.22.0
- 7.7
-1.3
0.0
0.0
0.0
- 9.0
Disposals
-12.3
- 69.9
- 39.5
0.0
0.0
-121.7
Reclassifications
0.7- 0.60.30.00.00.4
448.1
1,580.8
635.8
0.0
0.4
2,665.1
545.1
739.7
226.2
28.0
87.6
1,626.6
532.9
751.7
224.8
15.0
54.9
1,579.3
In the financial year under review, Freudenberg did not receive any government grants for tangible assets. In
the previous year, grants totaling €1.2 million were received. These mainly concerned investment promotion and
were netted against acquisition costs.
90
Leased assets
Leased assets are recognized under non-current assets at the following book values:
[€ million]
Dec. 31, 2010
Intangible assets
Land and buildings
Machinery and equipment
Other fixtures, fittings and office equipment
Book value of leased assets recognized
Dec. 31, 2011
0.0
0.7
9.4
9.2
0.6
0.4
0.4
0.8
10.411.1
Dec. 31, 2011
Over 5 years
1 to 5 years
Up to 1 year
Dec. 31, 2010
Over 5 years
1 to 5 years
[€ million]
Up to 1 year
The finance lease contracts were concluded at arm’s-length business conditions. Such leases normally include
favorable purchase options. The lease contracts do not provide for any contingent rent payments or significant
restrictions.
Finance leases
Minimum lease payments
1.33.40.04.7 0.81.10.01.9
Discount
0.10.20.00.3 0.00.10.00.1
Present value
1.23.20.04.4 0.81.00.01.8
Operating leases
Minimum lease payments
49.3
85.0
21.7 156.0
58.5 100.8
37.9 197.2
Lease payments totaling €79.0 million (previous year: €76.8 million) under operating leases were recognized
with an effect on net income.
(3) Investment properties
Details of land and buildings held by the Freudenberg Group as investment properties are shown in the table
below:
Third-party use
Rent income
Direct operating
[€ million]
expenses
2010
100 %
3.6
0.6
2011
100 %
3.8
0.4
There are no restrictions on the saleability of investment properties. Freudenberg is not under any contractual
obligations to purchase, build or develop investment properties. Furthermore, Freudenberg is not under any
contractual obligations to repair or maintain such properties going beyond its statutory obligations.
92
Changes in investment properties from January 1 to December 31, 2010
[€ million]
Status Jan. 1, 2010
40.2
0.0
0.0
Additions1.1
Write-ups/revaluations0.0
Disposals0.0
Reclassifications6.0
47.3
DEPRECIATION
Status Jan. 1, 2010
21.8
0.0
0.0
1.6
Impairment losses
0.0
Disposals0.0
24.3
23.0
18.4
Changes in investment properties from January 1 to December 31, 2011
[€ million]
Status Jan. 1, 2011
47.3
0.0
0.0
Additions0.7
Disposals0.0
48.2
DEPRECIATION
Status Jan. 1, 2011
24.3
0.0
0.0
1.6
Impairment losses
0.0
Disposals0.0
25.9
22.3
23.0
The fair value of investment properties is €32.1 million (previous year: €31.1 million).
94
(4) Investments valued at equity
The book value of investments valued at equity is as follows:
[€ million]
Status Jan. 1
Pro-rata share of profit
Dividends
Exchange rate effects
Value changes without impact on profit or loss
Other changes
Status Dec. 31
20102011
517.1
45.3
- 8.4
114.5
-19.9
7.8
656.4
656.4
44.3
-10.0
58.1
- 38.1
- 0.2
710.5
The figures last published by the two most significant associated companies in their consolidated annual reports,
as at March 31, 2010 and March 31, 2011, were as follows:
March 31, 2010 Sales
Net
Assets
[¥ million]
income
NOK Corporation, Tokyo, Japan
414,753
1,279
547,255
Japan Vilene Company Ltd., Tokyo, Japan
45,837
1,266
50,549
March 31, 2011 Sales
Net
Assets
[¥ million]
income
NOK Corporation, Tokyo, Japan
498,932
16,685
525,553
Japan Vilene Company Ltd., Tokyo, Japan
45,979
2,233
50,416
Liabilities
290,752
23,048
Liabilities
263,069
22,088
These associated companies were consolidated on the basis of their interim financial statements as at
December 31, 2011.
As at December 31, 2011, the market values of the shareholdings were €574.3 million (¥57,494.3 million)
(previous year: €677.3 million; ¥73,545.3 million) for NOK Corporation and €54.4 million (¥5,443.7 million)
(previous year: €64.2 million; ¥6,975.3 million) for Japan Vilene Company Ltd.
(5) Inventories
Inventories break down as follows:
[€ million]
Dec. 31, 2010
Raw materials and consumables
Work in progress
Finished goods and merchandise
Payments made on account
Dec. 31, 2011
201.6
240.4
94.9
96.3
360.0
432.2
3.2
2.7
659.7771.6
Inventories rose by about 17 percent, chiefly as a result of the increase in sales, higher raw material prices and
the need to ensure delivery capabilities.
Write-downs of inventories totaling €31.3 million (previous year: €32.9 million) were recognized as expenses
in the reporting year.
Write-ups totaling €7.8 million (previous year: €7.1 million) were effected on inventories as the reason for the
impairment losses concerned no longer existed.
The inventories shown are not subject to any significant restrictions on title or disposal.
96
Trade receivables
Other assets
838.4
129.9
968.3
0.0
838.4
54.2
184.1
54.2 1,022.5
926.6
135.0
1,061.6
Dec. 31, 2011
Residual term
more than 1 year
Residual term
up to 1 year
Dec. 31, 2010
Residual term
more than 1 year
[€ million]
Residual term
up to 1 year
(6) Receivables
0.0
926.6
60.8
195.8
60.8 1,122.4
The increase in trade receivables was chiefly the result of sales.
The other assets include pension plan assets in excess of the corresponding pension obligations in the amount
of €39.6 million (previous year: €34.2 million).
The other assets also include emission rights received at no charge with an amount of €0.2 million (previous
year: €1.1 million). These emission rights were issued on the basis of the Greenhouse Gas Emissions Trading Act
and the Allocation Act.
Furthermore, the other assets include other tax receivables in the amount of €47.2 million (previous year:
€36.9 million) and liability insurance claims totaling €6.5 million (previous year: €6.8 million).
The claims for reimbursement in connection with recognized provisions, which are included in other assets, are
shown in the statement of changes in provisions.
(7) Securities and cash at bank and in hand
[€ million]
Dec. 31, 2010 Dec. 31, 2011
Securities
Checks and cash in hand
Cash at banks
72.289.5
3.4
7.1
572.0
627.4
647.6724.0
The securities mainly concern commercial paper issued by industrial companies.
(8) Non-current assets held for sale and disposal groups
In 2011, this item includes assets and liabilities in connection with the sale of land in Berlin.
The book values of the assets and liabilities included in the disposal group break down as follows:
[€ million]
Dec. 31, 2010 Dec. 31, 2011
Intangible and tangible assets
32.7
7.1
Inventories
7.80.0
Trade receivables
9.9
0.0
Other assets
1.3
0.0
Non-current assets held for sale
51.7
7.1
1.5
0.0
Other provisions
3.7
0.0
Trade payables
5.0
0.0
Other liabilities
3.1
0.4
Liabilities in connection with non-current assets
held for sale
13.3
0.4
98
(9) Equity
Partners’ capital consists of:
[€ million]
General Partners’ capital
Limited Partners’ capital
Dec. 31, 2010 Dec. 31, 2011
0.0
0.0
450.0
450.0
450.0450.0
Retained earnings consist of:
[€ million]
Non-distributable Partners‘ reserves
Group reserves
Dec. 31, 2010 Dec. 31, 2011
135.7
269.9
1,694.9
1,822.1
1,830.62,092.0
Non-distributable Partners’ reserves are intended to secure the continued existence of the Group and are used
especially for capital increases or, should the need arise, to absorb losses.
Group reserves include the reserves and retained earnings of companies included in the consolidated financial
statements.
In the year under review, no changes in the value of securities which had been recorded without an effect on
net income were recognized on the income statement. Furthermore, no changes in the value of derivative financial instruments which had been recorded without an effect on net income (previous year: €0.1 million) were
recognized on the income statement.
Tax effects in connection with income (+) and expenses (-) recorded without an effect on net income in 2011
break down as follows:
[€ million]
Derivative financial instruments
Securities and other items
Dec. 31, 2010 Dec. 31, 2011
0.0
0.0
- 0.5
0.3
Non-controlling interests
This item concerns non-controlling interests in the equity capital of consolidated subsidiaries.
The rise in non-controlling interests from €279.5 million in 2010 to €299.4 million in 2011 is mainly the result of
the allocation of profit for the year. These effects were offset by dividend payments.
(10) Provisions for pensions
The provisions for pensions mainly concern German companies. This item includes obligations arising from
current pensions and future pension entitlements.
The Freudenberg Group pension scheme consists of both defined contribution and defined benefit pension
plans. Defined benefit plans include both fixed salary and final salary plans. In the case of the defined contribution plans, there are no additional obligations apart from the payment of contributions. Contributions paid are
expensed under personnel expenses and amounted to €64.8 million in 2011 (previous year: €61.9 million).
Contributions paid mainly include employers’ contributions to the statutory pension scheme.
The value of provisions for defined benefit plans was calculated on actuarial principles by the projected unit
credit method. For the German companies, the calculation was based on the following actuarial assumptions:
Dec. 31, 2010 Dec. 31, 2011
Discount rate
Pension trend
5.10 %
2.00 %
5.25 %
2.00 %
As a result of the pension plan regulations, the assumed trend in salaries and wages only had an effect on the
value of pension obligations in exceptional cases.
In the case of the foreign companies, the actuarial assumptions used for the calculations were within the following ranges:
Dec. 31, 2010 Dec. 31, 2011
Discount rate
Salary trend
Pension trend
Expected return on plan assets
4.5
2.0
1.5
5.0
%
%
%
%
–
–
–
–
6.0
4.0
3.5
7.5
%
%
%
%
4.4
2.5
2.0
3.5
%
%
%
%
–
–
–
–
5.6
3.6
3.1
7.0
%
%
%
%
Actuarial gains and losses are recognized as expenses if they exceed 10 percent of the greater of the present
value of pension obligations and the fair value of the pension plan assets (the “corridor approach”). The amount
in excess of this figure is expensed over the average remaining working lives of the employees participating in
the plan.
100
Net pension obligations are shown in the following items of the statement of financial position:
[€ million]
Other assets
Net pension obligations
Dec. 31, 2010 Dec. 31, 2011
409.1
34.2
374.9
412.1
39.6
372.5
Net pension obligations are calculated as follows:
[€ million]
Present value of funded defined benefit obligations
Fair value of plan assets
Deficit
Present value of unfunded defined benefit obligations
Unrecognized actuarial gains/losses
Unrecognized past service cost
Net pension obligations
Dec. 31, 2010 Dec. 31, 2011
252.5
267.5
- 228.3
- 244.0
24.223.5
440.9
453.1
- 90.8
-104.7
0.6
0.6
374.9
372.5
Pension expenses consist of the following components:
[€ million]
Current service cost
Interest cost
Net actuarial gains/losses recognized
Past service cost
Gain/loss on curtailment and settlement
Total pension expenses
Dec. 31, 2010 Dec. 31, 2011
7.0
35.5
-13.7
4.0
0.5
0.0
33.3
7.5
35.0
-14.9
3.9
0.0
-1.2
30.3
Pension expenses are included in the personnel expenses allocated to the appropriate functional areas of the
income statement.
The actual return on pension plan assets was €15.0 million (previous year: €21.8 million).
In the year under review, defined benefit obligations developed as follows:
[€ million]
Present value of defined benefit obligations, Jan. 1
Current service cost
Interest cost
Actuarial gains (-) and losses (+)
Gains (-) and losses (+) on curtailment and settlement
Past service cost
Contributions by plan participants
Liabilities extinguished on settlements
Benefits paid
Reclassifications/other changes
Present value of defined benefit obligations, Dec. 31
20102011
624.8
7.0
35.5
40.1
0.1
- 0.1
0.6
- 0.8
- 32.4
5.4
13.2
693.4
693.4
7.5
35.0
15.3
0.0
0.0
0.6
- 2.5
- 35.3
- 0.9
7.5
720.6
In the year under review, plan assets developed as follows:
[€ million]
Fair value of plan assets, Jan. 1
Actuarial gains (+) and losses (-)
Contributions by employer
Contributions by plan participants
Liabilities extinguished on settlements
Benefits paid
Reclassifications/other changes
Fair value of plan assets, Dec. 31
20102011
191.3
13.7
8.1
13.4
0.6
- 2.4
- 8.8
2.3
10.1
228.3
228.3
14.9
0.1
8.0
0.6
- 2.3
-11.6
- 0.5
6.5
244.0
102
The fair value of plan assets is distributed as follows:
[€ million]
Dec. 31, 2010 Dec. 31, 2011
Equity instruments
Interest-bearing securities
Other assets
110.0
93.5
105.1
142.6
13.2
7.9
228.3244.0
The expected return on plan assets is calculated on the basis of the market prices of plan assets as of the
respective date.
Over the past five years, the present value of defined benefit obligations, the fair value of plan assets and
funded status have changed as follows:
[€ million]
Present value of defined benefit obligations
Fair value of plan assets
Funded status
20072008200920102011
619.7
553.1
624.8
693.4
720.6
- 220.0
-173.1
-191.3
- 228.3
- 244.0
399.7380.0433.5465.1476.6
In 2012, contributions in the amount of €13.5 million (2011: €8.2 million) will probably be made to the pension
fund.
Experience adjustments to the present value of defined benefit obligations have been as follows:
[€ million]
Gain (+) / loss (-)
20072008200920102011
- 4.6
2.6
- 4.4
6.9
-15.8
The deviation between actual return and expected return on plan assets was €0.1 million in 2011 (previous
year: €8.1 million).
Total
Miscellaneous provisions
Provisions for rebates,
bonuses and commissions
Provisions for warranties,
guarantees and onerous
contracts
[€ million]
Provisions for personnel
obligations
(11) Other provisions
Status Jan. 1, 2011
250.6
40.9
17.6
158.2
467.3
Increases
148.2
25.516.867.2257.7
Unwinding of discount and
effect of change in discount rate
0.0
0.1
0.0
0.4
0.5
Amounts used
-136.1
-16.5
-12.6
- 73.7
- 238.9
Reversal
-15.1
-11.7
- 2.3
- 33.9
- 63.0
0.2
- 0.3
0.3
-1.2
-1.0
Other changes
3.6
- 0.3
- 0.1
0.6
3.8
251.4
37.7
19.7
117.6
426.4
Of which long-term
80.52.1 0.7 14.3 97.6
Of which short-term
170.935.6 19.0 103.3 328.8
Reimbursement claims connected with
provisions and shown in the statement
of financial position under other assets
1.1
0.0
0.1
1.0
2.2
The provisions for personnel obligations mainly include other long- and short-term employee benefits, especially
for vacation not taken, social security contributions and partial retirement.
The miscellaneous provisions include, inter alia, provisions for litigation risks, advertising, environmental
protection and restructuring.
104
Dec. 31, 2011
Residual term
more than
5 years
Residual term
1 to 5 years
Residual term
up to 1 year
Dec. 31, 2010
Residual term
more than
5 years
Residual term
1 to 5 years
[€ million]
Residual term
up to 1 year
(12) Liabilities
Liabilities to banks
(= financial debt)
65.7 292.1
20.7 378.5
39.7 290.1
20.6 350.4
Other financial debt,
including leasing
4.43.30.07.7 6.01.00.07.0
Partners’ accounts *
197.5365.7 0.0 563.2 239.8385.8 0.0625.6
Financial debt
267.6661.1 20.7 949.4 285.5676.9 20.6983.0
Trade payables
515.90.0 0.0
515.9550.00.0 0.0
550.0
Advance payments
received on orders
10.5
0.0
0.0
10.5
12.9
0.0
0.0
12.9
Miscellaneous liabilities
215.748.0 1.1
264.8 233.457.8 4.5
295.7
Other liabilities
226.248.0 1.1275.3 246.357.8 4.5
308.6
1,009.7709.1 21.8
1,740.6 1,081.8734.7 25.1
1,841.6
* following appropriation of profit for reporting year
The average interest rate on long-term liabilities to banks was 3.28 percent (previous year: 2.90 percent).
The interest payable on the certificates of indebtedness (“Schuldscheindarlehen”) included in the liabilities to
banks is based on variable and fixed components. Cash flows for variable and fixed interest and repayment of
principal are distributed as follows between the years 2012 and 2013:
[€ million]
Certificates of indebtedness
Book value
Dec. 31, 2010
267.5
2011
7.6
Certificates of indebtedness
Dec. 31, 2011
267.5
2012
9.0
Cash flows
2012
8.8
2013
277.8
2013
274.3
Other financial debt also includes short-term bills of exchange and liabilities in connection with finance leases.
The average interest rate on these liabilities is 5.27 percent (previous year: 2.49 percent).
Mainly the liabilities under leasing contracts included in other financial debt are discounted. Further details are
given in information on finance leases under note (2).
The interest rates applicable to Partners’ accounts vary between 5.5 percent and 7.0 percent (previous year:
between 5.5 percent and 7.0 percent) and between 1.0 percent and 3.1 percent (previous year: between
1.0 percent and 2.5 percent), depending on the agreements concerned.
Miscellaneous liabilities include liabilities for tooling cost contributions, other taxes, outstanding wages and
salaries, holiday pay and special bonuses.
106
Contingent liabilities and other financial commitments
[€ million]
Dec. 31, 2010 Dec. 31, 2011
Contingent liabilities
Liabilities in connection with notes
7.7
8.5
Liabilities in connection with guarantees
15.3
17.8
Liabilities in connection with warranty agreements
0.1
0.1
Collateral for third-party liabilities
0.1
0.0
Miscellaneous contingent liabilities
2.9
2.6
26.129.0
Other financial commitments
Commitments arising from leasing contracts*
156.0
197.2
Purchase commitments connected with intangible assets
0.0
0.0
Purchase commitments connected with tangible assets
10.1
25.8
Purchase commitments connected with the delivery of goods or services
60.7
68.5
Miscellaneous commitments
5.5
4.4
232.3295.9
* see also note (2) “Tangible assets” as regards leased assets
Additional information on financial instruments
The term “financial instrument” is used to refer to any contract that gives rise to both a financial asset of one
enterprise and a financial liability or equity instrument of another enterprise. A distinction is made between
primary and derivative financial instruments. Primary financial instruments in the case of the purchase or sale of
assets are recognized at the settlement date, i.e. the delivery of the asset concerned. Derivative financial instruments are recognized as of the trade date. In the event of loss of control over the contractually agreed rights to
a financial asset, the asset concerned is derecognized. Financial liabilities are derecognized on the statement of
financial position when the commitment is discharged or cancelled, or expires.
Under IAS 39, financial instruments are divided into the following categories:
L oans and receivables
This category includes financial assets with fixed or determinable payments that are not quoted in an active
market.
eld-to-maturity investments
H
Held-to-maturity investments are financial assets with fixed or determinable payments and fixed maturity that
an entity has the positive intention and ability to hold to maturity.
vailable-for-sale financial assets
A
This category includes all the other financial assets which cannot be allocated to any of the categories
mentioned above.
Financial assets or financial liabilities at fair value through profit or loss
These include:
– financial assets or financial liabilities held for trading and
– financial assets or financial liabilities designated by the entity as at fair value through profit or loss upon
initial recognition.
The Freudenberg Group does not hold any financial assets or financial liabilities for trading purposes.
Freudenberg did not avail itself of the fair value option under IAS 39 under which it is possible to measure
any financial asset or financial liability at fair value through profit or loss.
108
Primary financial instruments
Primary financial instruments are assigned to categories on the basis of the relevant items in the statement of
financial position. The allocation to the categories defines the accounting and measurement of the instruments.
Book value at
Dec. 31, 2010
Other financial liabilities
at amortized cost
Available-for-sale financial
assets at amortized cost
assets at fair value without
effect on profit or loss
[€ million]
Loans and receivables
at amortized cost
Loans, receivables and liabilities are recognized at amortized cost. Available-for-sale financial assets are recognized at fair value without effect on net income except where the fair value of such assets cannot be reliably
determined. In such cases, these assets are recognized at acquisition costs. Any impairments are shown in the
income statement with an effect on profit or loss.
ASSETS
6.3
13.7
76.4
96.4
Trade receivables
838.4
838.4
Other assets
86.7
86.7
Securities and cash at bank
and in hand
647.6
647.6
Total
1,579.0
13.7
76.4 1,669.1
LIABILITIES
Financial debts
949.4
949.4
Trade payables
515.9
515.9
Other liabilities
131.5
131.5
Total 1,596.8 1,596.8
Book value at
Dec. 31, 2011
Other financial liabilities
at amortized cost
assets at amortized cost
assets at fair value without
effect on profit or loss
[€ million]
Loans and receivables
at amortized cost
ASSETS
6.9
14.4
63.4
84.7
Trade receivables
926.6
926.6
Other assets
80.7
80.7
Securities and cash at bank
and in hand
724.0
724.0
Total
1,738.2
14.4
63.4 1,816.0
LIABILITIES
Financial debts
983.1
983.1
Trade payables
550.0
550.0
Other liabilities
137.1
137.1
Total 1,670.2 1,670.2
The Freudenberg Group currently does not hold any held-to-maturity investments.
The fair values of financial assets and liabilities recognized at amortized cost are approximately equal to their
book values.
The fair values of financial instruments held by the Freudenberg Group and measured at fair value in the
amount of €14.4 million (previous year: €13.7 million) were determined on the basis of active markets for
identical assets.
110
between 61
and 120 days
between 121
and 180 days
between 181
and 360 days
more than
360 days
20.7
0.1
3.9
0.0
5.8
0.2
2.6
0.8
between 181
and 360 days
more than
360 days
Thereof: not impaired as at Dec. 31, 2011 and
due and payable within the following time from the
statement of financial position date
between 121
and 180 days
753.7
73.7
up to
60 days
Thereof: neither past
due nor impaired as at
Dec. 31, 2010
926.6
80.7
100.6
0.2
between 61
and 120 days
Trade receivables
Other assets
683.9
84.2
Thereof: not impaired as at Dec. 31, 2010 and
due and payable within the following time from the
statement of financial position date
up to
60 days
[€ million]
838.4
86.7
Thereof: neither past
due nor impaired as at
Dec. 31, 2011
Trade receivables
Other assets
Book value at
Dec. 31, 2011
[€ million]
Book value at
Dec. 31, 2010
Credit risks
116.9
1.9
20.0
0.9
6.3
0.1
5.3
0.2
3.4
3.7
In the case of trade and other receivables for which no impairments have been recognized and which are not
past due, no defaults are expected. The major part of trade receivables (normally between 70 and 90 percent
of each receivable) is covered by credit insurance. Otherwise, the book value represents the maximum credit
risk associated with each receivable.
Impairment losses to trade receivables developed as follows:
[€ million]
20102011
Impairment losses as of Jan. 1
Additions (expenses for impairments)
Amounts used
Reversals (write-ups)
Impairment losses as of Dec. 31
27.1
0.9
5.2
- 5.3
- 4.1
23.8
23.8
- 0.1
7.7
- 4.2
- 3.3
23.9
Impairment losses to other assets developed as follows:
[€ million]
Impairment losses as of Jan. 1
Additions (expenses for impairments)
Amounts used
Reversals (write-ups)
Impairment losses as of Dec. 31
20102011
1.6
0.0
0.3
- 0.1
0.0
1.8
1.8
0.0
0.0
0.0
0.0
1.8
In the year under review, impairment losses to receivables totaling €3.3 million (previous year: €4.1 million)
were reversed as the reason for the impairment no longer applied and impairment losses in the amount of
€7.7 million (previous year: €5.5 million) were set up. These impairment losses were recognized where payments were no longer expected or no longer expected in full.
112
Derivative financial instruments
The parent company Freudenberg & Co. is responsible for all the financing activities of the Freudenberg Group
and also operates the cash management system for the entire Group. The Group companies obtain the financing they require via cash pools or loans provided by internal financing companies or, in some countries, in the
form of bank loans guaranteed by Freudenberg & Co.
The limits of action, responsibilities and control procedures in connection with derivative financial instruments
are laid down in a binding form in internal directives for Group companies. Freudenberg & Co. does not
expose itself to additional financial risks through speculation with derivative financial instruments but uses such
instruments only for hedging, and therefore reducing, risks in connection with underlying transactions. Future
transactions are only hedged if there is a high probability of occurrence.
Freudenberg & Co. uses derivative financial instruments for hedging interest rate and foreign exchange risks.
Fair values are determined on the basis of quoted prices, accepted market information systems or discounted
cash flows.
Derivative financial instruments for hedging recognized assets or liabilities (fair value hedges) are shown in the
statement of financial position at fair value. Changes in the fair value are recorded in the income statement.
Financial instruments for hedging future cash flows (cash flow hedges) are also included in the statement of
financial position at fair value, but changes in the fair value of such instruments are recognized without effect on
net income under retained earnings, taking into consideration the applicable income taxes. Such changes are
recognized in the income statement when the underlying transactions concerned are effected. Ineffective portions of hedge transactions are always recognized in the income statement.
The face value of derivatives entered into for interest rate hedging (long-term interest rate swaps) was
€191.4 million (previous year: €191.7 million). As at December 31, 2011, the negative net fair value of the
interest rate swaps was €9.9 million (previous year: €12.4 million). These derivatives were used for hedging
rising interest rates and the cash flow risk of variable interest payables.
As of December 31, 2011, the face value of currency futures concluded for hedging foreign exchange risks and
still open was €1.8 million (previous year: €4.7 million). All these transactions were conventional currency
futures. The positive fair value of these instruments as of December 31, 2011 was €0.1 million (previous year:
balanced fair value).
Of the total volume of derivatives, 98.8 percent (previous year: 98.9 percent) had a term of more than one
year.
The following fair values of derivative financial instruments are included in the other assets and other liabilities
respectively:
[€ million]
Dec. 31, 2010
Dec. 31, 2011
Other assets
Currency futures
0.1
0.1
Other liabilities
Currency futures
0.1
0.0
Interest rate swaps
12.3
9.9
The value changes (gains) in the case of interest rate swaps and currency futures (cash flow hedges), amounting
to €2.5 million (previous year: €0.5 million), are recognized in equity.
The interest rate swaps are mainly intended to hedge risks of interest changes with respect to variable-interest
loans on a long-term basis. The transactions are expected to occur in the period up to 2013.
The fair values of derivative financial instruments were determined on the basis of recognized market information
systems or discounted cash flows, in the amount of €-9.8 million (previous year: €-12.3 million), for identical
assets and liabilities.
Risks in connection with financial instruments
Freudenberg is exposed to risks resulting from changes in exchange rates and interest rates and uses conventional derivative instruments such as interest rate swaps, caps and currency futures to hedge risks in connection
with business operations and financing to a limited extent. The use of these instruments is governed by Group
directives within the risk management system which lay down limits on the basis of the value of the underlying
transactions, define approval procedures, exclude the use of derivative instruments for speculative purposes,
minimize credit risks and govern internal reporting and the separation of functions. Compliance with these
directives and the proper handling and measurement of transactions are regularly verified by both the Finance
and Projects, and Group Accounting and Controlling functions, observing the principle of separation of functions.
Furthermore, risk management for financial instruments is integrated in the Freudenberg Group risk management
system.
The risks which are hedged are chiefly as follows:
Interest rate risk:
In the case of fixed-interest loans or investments, there is a risk that changes in the market interest rate will affect
the market value of the item concerned (market-value risk contingent on interest rates). In contrast, variable
interest loans and investments are not subject to this risk as the interest rate is adjusted to reflect changes in the
market situation with a very short delay. However, there is a risk with respect to future interest payments as a
result of short-term fluctuations in market interest rates (cash flow risk contingent on interest rates).
114
To hedge risks resulting from interest rate changes, Freudenberg primarily concludes long-term interest rate
swaps and caps.
Risks associated with interest rate changes mainly affect long-term items. A fall in long-term interest rates results
in a decrease in the fair value shown on the statement of financial position for derivative financial instruments
concluded for interest rate hedging.
If the average market interest rate had been one percentage point higher as of December 31, 2011, equity
would have been €2.9 million (previous year: €4.7 million) higher. If the average market interest rate had been
one percentage point lower as of December 31, 2011, equity would have been €3.0 million (previous year:
€4.9 million) lower. There would have been no effect on net income.
As a general principle, external borrowings are repaid when due. The only interest rate risk related to these
borrowings is therefore associated with variable-interest borrowings.
Currency risk:
The primary financial instruments are chiefly held in the functional currency.
Exchange rate differences caused by the conversion of financial statements into the Group currency are not
taken into consideration.
If the value of the euro against major currencies (USD, GBP and JPY) had been 10.0 percent higher as of
December 31, 2011, the profit before income taxes would have been €14.5 million higher (previous year:
€12.4 million higher). If the value of the euro against major currencies (USD, GBP and JPY) had been
10.0 percent lower as of December 31, 2011, the profit before income taxes would have been €6.0 million
lower (previous year: €7.5 million lower).
Liquidity risk:
Risks connected with cash flow fluctuations are identified at an early stage by the cash flow planning system
already in place. As a result of the Group‘s good rating (Baa1) and the credit lines granted by banks on a
binding basis, Freudenberg can access ample sources of funds at all times.
Credit risk:
Specific provisions and individualized generic provisions are recognized to take account of identifiable risks
not covered by credit insurance. Otherwise, the book value represents the maximum credit risk.
Freudenberg & Co. only concludes derivative financial instruments with national and international banks of at
least investment grade rating. Credit risks are minimized by distributing hedges between several banks.
Notes to the Consolidated Income Statement
(13) Sales
Sales include revenue from the sale of goods amounting to €5,843.9 million (previous year: €5,353.0 million),
services in the amount of €101.2 million (previous year: €80.2 million) and licenses in the amount of
€38.7 million (previous year: €24.8 million). Other sales totaled €22.7 million (previous year: €23.4 million).
(14) Cost of sales
Cost of sales indicates the cost of goods and services sold. Apart from individual directly attributable costs,
such as personnel expenses and material expenses, overheads, including depreciation/amortization, are also
shown under cost of sales.
(15) Research and development expenses
Apart from personnel and material expenses, research and development expenses chiefly include the cost of
licenses and patents created in the course of development projects.
(16) Other income
Other income mainly includes income from other secondary business and income from disposals of financial
assets and non-current assets. Exchange rate gains were set off against exchange rate losses.
(17) Other expenses
Among other items, other expenses include losses on disposals of non-current assets and financial assets.
Following the offsetting of exchange rate gains, exchange rate losses amounted to €2.1 million (previous year:
exchange rate gains of €2.6 million).
(18) Interest and similar expenses
Interest expenses include interest on Partners’ accounts totaling €27.6 million (previous year: €26.2 million).
116
(19) Income taxes
This item shows German corporation tax (plus solidarity surcharge) and municipal trade taxes and similar taxes
on income payable in other countries.
The figure also includes deferred taxes on temporary differences between the tax balance sheets and commercial balance sheets of individual companies, on adjustments to uniform measurement within the Group and on
consolidation transactions.
Deferred taxes are calculated at the tax rates applicable in the countries concerned.
Income taxes break down as follows (expense (-) / income (+)):
[€ million]
Current taxes related to the reporting period
Current taxes related to prior periods
Deferred taxes
20102011
-125.3
-135.5
- 0.7
- 5.1
6.0
-12.7
-120.0-153.3
The amount of deferred tax income relating to changes in tax rates was €0.6 million (previous year:
€0.4 million).
In the reporting year, deferred taxes relating to transactions recognized directly under equity resulted in a
reduction in equity of €0.5 million (previous year: reduction of €0.1 million).
As of December 31, 2011, tax losses carried forward amounted to €340.2 million (previous year: €387.2 million).
Deferred tax assets were recognized in respect of tax losses carried forward totaling €22.4 million (previous
year: €68.7 million). Deferred tax assets were not recognized in respect of tax losses carried forward with a
total amount of €317.8 million (previous year: €318.5 million) as it is not expected that these losses will be
usable.
In the reporting year, tax losses carried forward totaling €24.1 million (previous year: €37.0 million) for which
no deferred tax assets had been recognized were used.
Deferred tax
liabilities
Dec. 31, 2011
Deferred tax
assets
Dec. 31, 2011
Deferred tax
liabilities
Dec. 31, 2010
[€ million]
Deferred tax
assets
Dec. 31, 2010
Deferred taxes concern temporary differences and tax losses carried forward with the following amounts:
Intangible assets
5.3
53.0
5.5
52.8
Tangible assets
7.3
88.3
8.3
91.3
Financial assets
0.3
0.7
0.4
0.4
Inventories
19.5 0.918.6 1.0
Receivables
6.9 11.5 7.714.0
1.9
0.0
2.0
0.0
10.5
0.0
9.1
0.2
Other provisions
28.6
3.3
32.5
3.0
Liabilities
17.8 3.912.3 3.0
Other liabilities
0.7
0.6
0.3
2.5
Tax losses carried forward
13.2
0.0
4.8
0.0
112.0 162.2101.5168.2
Offsetting
- 33.0
- 33.0
- 33.4
- 33.4
Recognized in statement of financial position
79.0
129.2
68.1
134.8
No deferred tax items were set up on temporary differences arising from shareholdings totaling €29.9 million
(previous year: €25.9 million) as short-term dividend payments are not expected.
Reconciliation of expected income taxes with actual income taxes
Freudenberg & Co. and its German subsidiaries are subject to the municipal trade tax on income. In addition,
many German subsidiaries registered as corporations are subject to corporation tax (plus solidarity surcharge).
Income realized in other countries is taxed at the rates applicable in the countries concerned. The tax rate of
34 percent (previous year: 35 percent) used for calculating the expected tax expense is based on the structure
of the Freudenberg Group relevant for taxation. It is calculated as the weighted average of the tax rates for the
regions in which the Group realized its main income.
118
[€ million]
20102011
441.7
Expected income tax expense (-) / income(+)
-154.6
Different tax rates:
in Germany
8.3
in other countries
16.7
Tax portion of:
non-taxable income
26.6
non-deductible expenses
- 24.6
Current taxes related to prior periods
- 0.7
Tax portion of new tax losses carried forward for
which no deferred tax assets were recognized
- 6.5
Tax portion of tax losses carried forward and used for
which no deferred tax assets were recognized
8.3
Other taxation effects
6.5
Actual income tax expense
-120.0
Effective tax rate (percent)
27.2
511.5
-173.9
11.2
24.5
26.1
- 28.7
- 5.1
- 7.7
7.0
- 6.7
-153.3
30.0
(20) Profit or loss attributable to non-controlling interests
[€ million]
20102011
Profit
Loss
37.240.8
- 2.0
- 2.6
35.2
38.2
(21) Notes to the Consolidated Statement of Cash Flows
Freudenberg recognizes checks, cash in hand, cash at bank and short-term securities with an original term of up
to three months as cash and cash equivalents.
The cash flow from operating activities takes into account payments for taxes amounting to €176.8 million
(previous year: €82.5 million), dividends received in the amount of €10.5 million (previous year: €12.8 million)
– including dividends received from associated companies totaling €10.0 million (previous year: €8.4 million) –
as well as interest paid of €51.7 million (previous year: €48.2 million) and interest received of €12.9 million
(previous year: €9.2 million).
Payments to Partners and non-controlling interests include withdrawals by Partners in Freudenberg & Co. and
dividends paid to non-controlling interests in Group companies. Payments made in connection with Partners’
taxes are also included.
Further Notes
Application of Sec. 264 (3), HGB (Handelsgesetzbuch, “German Commercial Code”), Sec. 264b, HGB
and Sec. 5 (6), PublG (Publizitätsgesetz, “German Disclosures Act”) in connection with Sec. 264 (3), HGB
The following German companies of the Group took advantage of the exemption provisions of Sec. 264 (3),
HGB, Sec. 264b, HGB and Sec. 5 (6), PublG in connection with Sec. 264 (3), HGB:
Chem-Trend (Deutschland) GmbH, Maisach/Gernlinden
Corteco GmbH, Weinheim
Dichtomatik Vertriebsgesellschaft für technische Dichtungen mbH, Hamburg
DS Holding-GmbH, Weinheim
EagleBurgmann Germany GmbH & Co. KG, Wolfratshausen
Externa Handels- und Beteiligungsgesellschaft mit beschränkter Haftung, Heddesheim
FHP Export GmbH, Weinheim
FHP Holding GmbH, Weinheim
Freudenberg Dichtungs- und Schwingungstechnik GmbH, Berlin
Freudenberg DS Tooling Center GmbH & Co. KG, Weinheim
Freudenberg Finance GmbH, Weinheim
Freudenberg Immobilien Management GmbH, Weinheim
Freudenberg Mechatronics GmbH & Co. KG, Weinheim
Freudenberg O-Ring GmbH & Co. KG, Weinheim
Freudenberg Process Seals GmbH & Co. KG, Viernheim
Freudenberg Process Consulting GmbH, Weinheim
Freudenberg Schwingungstechnik Industrie GmbH & Co. KG, Velten
Freudenberg Sealing Technologies GmbH & Co. KG, Weinheim
Freudenberg Simmerringe GmbH & Co. KG, Weinheim
Freudenberg Simrit GmbH & Co. KG, Weinheim
Freudenberg Spezialdichtungsprodukte GmbH & Co. KG, Weinheim
Freudenberg Stanz- und Umformtechnik GmbH & Co. KG, Weinheim
Freudenberg Venture Capital GmbH, Weinheim
Freudenberg Versicherungsservice GmbH, Weinheim
Freudenberg Vliesstoffe KG, Weinheim
FV Holding GmbH, Weinheim
Integral Accumulator GmbH & Co. KG, Weinheim
Klüber Lubrication München Kommanditgesellschaft, Munich
Lederer GmbH, Öhringen
Merkel Freudenberg Fluidtechnic GmbH, Hamburg
OKS Spezialschmierstoffe GmbH, Munich
Vibracoustic GmbH & Co. KG, Weinheim
Vileda Gesellschaft mit beschränkter Haftung, Weinheim
120
Material expenses
[€ million]
Raw materials, consumables and
merchandise purchased
Services purchased
20102011
2,071.7
2,356.0
198.9
215.1
2,270.62,571.1
Personnel expenses
[€ million]
Wages and salaries
Social security contributions and
costs of pensions and assistance
20102011
1,277.2
1,357.6
328.5
346.0
1,605.71,703.6
Workforce
In the year under review, an average of 36,101 (previous year: 34,200) persons were employed in the
following functions:
2011
Production
Sales
Research and development
Administration
Germany
Other countries
Total
6,575
16,16922,744
1,784
4,8316,615
1,375
812
2,187
1,470
3,0854,555
11,204
24,89736,101
The above figures include a pro-rata share of the employees of companies consolidated on a pro-rata basis
totaling 2,738 (previous year: 2,496).
Research and development
In the year under review, expenses for research and development activities amounted to €205.4 million (previous year: €181.3 million). Of this amount, €36.4 million (previous year: €26.2 million) were charged to third
parties. The figure includes government grants for research and development projects totaling €5.0 million
Related party disclosure
Relations with other participations and associated companies within the scope of normal business activities were
as follows:
Other participations
Associated companies
Dec. 31
Residual
term up to
1 year
Payables
Dec. 31
Residual
term more
than 1 year
Residual
term up to
1 year
Sales
[€ million]
Dec. 31
30.4
28.9
1.6
30.5
10.2
0.0
10.2
20.6 2.50.53.0 22.60.0
22.6
51.0
31.4
2.1 33.5
32.8
0.0 32.8
Receivables
2011
Residual
term more
than 1 year
Residual
term up to
1 year
Dec. 31
Residual
term more
than 1 year
Payables
Residual
term more
than 1 year
Other participations
Associated companies
Residual
term up to
1 year
2010
[€ million]
Sales
Receivables
32.0
20.7
0.0
20.7
8.0
0.0
8.0
19.9 3.70.54.2 24.63.3
27.9
51.9
24.4
0.5 24.9
32.6
3.3 35.9
The total remuneration of members of the Board of Partners amounted to €0.9 million (previous year:
€0.4 million).
The total remuneration of members of the Management Board amounted to €7.9 million (previous year:
€4.9 million). Provisions for pensions for members of the Management Board amounted to €15.3 million
In the year under review, loans in the amount of €1.3 million were granted to members of the Management
Board. The interest rate is 2.0 percent and is to rise to 2.5 percent by 2014. The loans are due for repayment
on June 1, 2012 or no later than June 2, 2014 by the latest.
122
The remuneration paid to former members of the Management Board or their surviving dependants totaled
€8.8 million (previous year: €7.2 million). Provisions for pensions for former members of the Management
Board and their surviving dependants amounted to €63.4 million (previous year: €64.4 million).
The members of the Board of Partners and Management Board of Freudenberg & Co. are listed under
“Company Boards”.
Dr. Dr. Peter Bettermann, Speaker of the Management Board of Freudenberg & Co., and Dr. Wolfram
Freudenberg, Chairman of the Board of Partners, are also shareholders of Freudenberg Stiftung GmbH,
Weinheim (hereafter “Freudenberg Stiftung”).
Freudenberg Stiftung is a foundation established with the object of holding a donated participation of
€12.7 million (previous year: €12.7 million) in Freudenberg & Co. and using the income from this participation
for benevolent and charitable purposes. Any surplus liquid funds held by the foundation are invested in
Freudenberg & Co. The interest income from these funds at normal market conditions amounting to €0.9 million
(previous year: €0.8 million) was used for the purposes of the foundation.
Fees of the Auditor
The auditor, Ernst & Young GmbH Wirtschaftsprüfungsgesellschaft, performed the following services in the 2011
financial year.
[€ million]
Auditing services
Other assurance services
Tax advisory services
Other services
Fees of the Auditor
20102011
1.4
0.1
0.1
0.8
2.4
1.4
0.2
0.3
0.3
2.2
Major events after the date of the statement of financial position
As a major event occurring between the date of the statement of financial position and March 29, 2012
(the date when the annual report was approved for publication by the Board of Partners), the conclusion of the
joint venture contract between Freudenberg and Trelleborg AB on January 31, 2012 must be mentioned.
The approval of the competent authorities, in particular the European antitrust authority, is still outstanding.
FREUDENBERG & CO.
KOMMANDITGESELLSCHAFT
Shareholdings 123
Shareholdings of the Freudenberg Group
as at December 31, 2011
No. Company
Country
Share of capital
[in %]
I. Affiliated companies
1 Freudenberg & Co. Kommanditgesellschaft, Weinheim
Germany
-
Production companies, Germany
2 Chem-Trend (Deutschland) GmbH, Maisach/Gernlinden
3 EagleBurgmann Espey GmbH, Moers
4 EagleBurgmann Germany GmbH & Co. KG, Wolfratshausen
5 Freudenberg DS Tooling Center GmbH & Co. KG, Weinheim
6 Freudenberg Filtration Technologies KG, Weinheim
7 Freudenberg Haushaltsprodukte Augsburg KG, Augsburg
8 Freudenberg O-Ring GmbH & Co. KG, Weinheim
9 Freudenberg Schwingungstechnik Industrie GmbH & Co. KG, Velten
10 Freudenberg Sealing Technologies GmbH & Co. KG, Weinheim
11 Freudenberg Simmerringe GmbH & Co. KG, Weinheim
12 Freudenberg Spezialdichtungsprodukte GmbH & Co. KG, Weinheim
13 Freudenberg Stanz- und Umformtechnik GmbH & Co. KG, Weinheim
14 Freudenberg Vliesstoffe KG, Weinheim
15 Helix Medical Europe KG, Kaiserslautern
16 Integral Accumulator GmbH & Co. KG, Weinheim
17 Klüber Lubrication München Kommanditgesellschaft, Munich
18 Lederer GmbH, Öhringen
19 Merkel Freudenberg Fluidtechnic GmbH, Hamburg
20 OKS Spezialschmierstoffe GmbH, Maisach/Gernlinden
21 Simrax GmbH Gleitringdichtungen, Weinheim
22 SurTec Deutschland GmbH, Zwingenberg
23 Vibracoustic GmbH & Co. KG, Weinheim
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
100.00
75.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
100.00
60.00
100.00
100.00
roduction companies, other countries
P
24 Freudenberg S.A. Telas sin Tejer, Villa Zagala
Argentina
25 Klüber Lubrication Argentina S.A., Buenos Aires
Argentina
26 EagleBurgmann Australia Pty. Ltd., Ingleburn
Australia
27 Freudenberg Filtration Technologies (Aust) Pty. Ltd., Braeside
Australia
28 Klüber Lubrication Benelux S.A./N.V., Dottignies
Belgium
29Chem-Trend Industria e Comercio de Produtos Quimicos Ltda., ValinhosBrazil
30 EagleBurgmann do Brasil Vedacoes Ltda., Campinas, São Paulo
Brazil
31 Freudenberg Nao-Tecidos Ltda., Jacarei
Brazil
32 Freudenberg-NOK-Componentes Brasil Ltda., São Paulo
Brazil
33 Klüber Lubrication Lubrificantes Especiais Ltda., Barueri
Brazil
34 SurTec do Brasil Ltda., São Bernardo do Campo, São Paulo
Brazil
35 Vibracoustic do Brasil Ltda., Taubaté-SP.
Brazil
36 Asia Shine (Ningbo) Co Ltd, Zhenjiang
China
100.00
100.00
25.00
55.00
100.00
100.00
75.00
100.00
75.00
100.00
100.00
100.00
100.00
124
No. Company
Country
Share of capital
[in %]
37 Burgmann Dalian Co. Ltd., Dalian
China
40.00
38 Burgmann Shanghai Ltd., Shanghai
China
25.50
39 Chem-Trend Chemicals (Shanghai) Co., Ltd., Qingpu
China
100.00
40 E&J Brushes (Ningbo) Co Ltd, Zhenjiang
China
100.00
41 Klüber Lubrication Industries (Shanghai) Co., Ltd., Qingpu
China
100.00
42 SurTec Metal Surface Treatment Technology Co. Ltd., Hangzhou
China
75.00
43 Vibracoustic (Yantai) Co., Ltd., Yantai
China
100.00
44 Helix Medical LATR srl., San José
Costa Rica
100.00
45 EagleBurgmann Bredan A/S, Ringkøbing
Denmark
75.00
46 EagleBurgmann KE A/S, Vejen
Denmark
75.00
47 Freudenberg Evolon s.a.r.l., Colmar
France
100.00
48 Freudenberg Joints Elastomères SAS, Langres
France
100.00
49 Freudenberg Joints Plats SAS, Chamborêt
France
100.00
50 Freudenberg Politex S.A., Colmar
France
100.00
51 Freudenberg PSPE S.A.S., Andrezieux-Bouthéon
France
100.00
52 Freudenberg S.A.S., Langres
France
100.00
53 SurTec France S.A.S., Cugnaux
France
100.00
54 Freudenberg Nonwovens LP, Littleborough
United Kingdom
100.00
55 Freudenberg Technical Products LP, North Shields
United Kingdom
75.00
56 APEC (Asia) Limited, Hong Kong
Hong Kong
100.00
57 EagleBurgmann India Pvt. Ltd., Pune
India
50.00
58 EagleBurgmann KE Pvt. Ltd., Chennai
India
75.00
59 EagleBurgmann Mascot India Private Limited, Ambernath
India
34.00
60 Freudenberg Nonwovens India Pvt. Ltd., Chennai
India
100.00
61 Klüber Lubrication India Pvt. Ltd., Bangalore
India
90.00
62 SurTec Chemicals India Pvt. Ltd., Pune
India
100.00
63 BT-Tenute Meccaniche Rotanti S.p.A., Arcugnano
Italy
75.50
64 Corcos Industriale S.a.s. di Externa Italia S.r.l., Pinerolo
Italy
100.00
65 Fapam S.a.s. di Externa Italia S.r.l., Luserna San Giovanni
Italy
100.00
66 FHP di R. Freudenberg S.A.S., Milan
Italy
100.00
67 Freudenberg Tecnologie di Filtrazione S.a.s.
di Externa Holding S.r.l., Milan
Italy
100.00
68 M.B. Preform S.a.s. di Externa Holding S.r.l., Colonella
Italy
100.00
69 Marelli & Berta S.a.s. di Freudenberg S.p.A., Sant’ Omero
Italy
100.00
70 Politex S.a.s. di Freudenberg Politex s.r.l., Novedrate
Italy
100.00
71 Trasfotex s.r.l., Quaregna
Italy
70.00
72 EagleBurgmann Japan Co., Ltd., Tokyo
Japan
25.00
73 Freudenberg Vileda Jordan Ltd., Amman
Jordan
51.00
74 Freudenberg Oil & Gas Canada Inc., Nisku
Canada
100.00
75 Freudenberg-NOK Inc., Tillsonburg
Canada
75.00
76 EagleBurgmann Manufacturing Malaysia SDN. BHD., Petaling Jaya
Malaysia
25.00
Shareholdings 125
No. Company
Country
Share of capital
[in %]
77 EagleBurgmann Mexico S.A. de C.V., Cuautitlán
Mexico
75.00
78 EagleBurgmann Production Center S.A. de C.V.,
Santiago de Querétaro
Mexico
75.00
79 Freudenberg Telas sin Tejer S.A. de C.V., León
Mexico
100.00
80 Freudenberg-NOK de Mexico S.A. de C.V., Cuautla
Mexico
75.00
81 Freudenberg-NOK de Queretaro, S.A. de C.V., Querétaro
Mexico
75.00
82 Klüber Lubricacion Mexicana S.A. de C.V., Querétaro
Mexico
100.00
83 Vibracoustic de Mexico S.A. de C.V., Lerma
Mexico
100.00
84 EagleBurgmann New Zealand Ltd., Auckland
New Zealand
25.00
85 Freudenberg Household Products B.V., Arnhem
The Netherlands
100.00
86 EagleBurgmann Production Center Judenburg GmbH, Judenburg
Austria
75.00
87 Freudenberg Spezialdichtungsprodukte Austria GmbH & Co. KG,
Kufstein
Austria
100.00
88 Klüber Lubrication Austria Ges.m.b.H., Salzburg
Austria
100.00
89 Vibracoustic Polska Sp. z o.o., Sroda Slaska
Poland
100.00
90 Freudenberg Politex OOO, Nizhniy Novgorod
Russia
100.00
91 Freudenberg Household Products A.B., Norrköping
Sweden
100.00
92 SurTec Cacak d.o.o., Cacak
Serbia
70.00
93 Offshore Seals (Asia) Pte. Ltd., Singapore
Singapore
100.00
94 Freudenberg Filtration Technologies Slovensko, s.r.o., Potvorice
Slovakia
90.00
95 Freudenberg Espana S.A., Componentes, S.en C. i.L., Barcelona
Spain
100.00
96 Freudenberg Espana S.A., Telas sin Tejer, S.en C., Barcelona
Spain
100.00
97 Freudenberg Iberica S.A., S.en C., Parets del Vallés
Spain
100.00
98 Klüber Lubrication GmbH Ibérica S.en C., Barcelona
Spain
100.00
99 EagleBurgmann Seals S.A. (Pty) Ltd., Edenvale
South Africa
75.00
100 Freudenberg Nonwovens (Pty.) Ltd., Cape Town
South Africa
100.00
101 SurTec South Africa Pty. Ltd., Pretoria
South Africa
51.00
102 Chem-Trend Korea Ltd., Ansong-si
South Korea
100.00
103 EagleBurgmann Taiwan Co., Ltd., Yenchao
Taiwan
25.00
104 Freudenberg Far Eastern Spunweb Comp. Ltd., Tayuan, Taoyuan
Taiwan
60.18
105 EagleBurgmann (Thailand) Co., Ltd., Rayong
Thailand
25.00
106 ALUCON s.r.o., Lázne Belohrad
Czech Republic
100.00
107 EagleBurgmann Bredan s.r.o., Jilove u Prahy
Czech Republic
75.00
108 FAW s.r.o., i.L., Trebechovice Pod. O
Czech Republic
100.00
109 Tésneni a pruzne elementy k.s., Opatovice nad Labem
Czech Republic
100.00
110 Vibracoustic CZ s.r.o., Melnik
Czech Republic
100.00
111 Freudenberg Coskunöz Kalip Sanayi ve Ticaret A.S., Bursa
Turkey
75.00
112 Klüber Lubrication Yaglama Ürünleri Sanayi ve Ticaret A.S., Istanbul Turkey
100.00
113 Freudenberg Simmerringe Kft., Kecskemet
Hungary
100.00
114 Freudenberg Tömítés Ipari Kft., Lajosmizse
Hungary
100.00
115 Vibracoustic Magyarország Légrugó Technológia Kft., Nyíregyháza
Hungary
100.00
126
No. Company
Country
116 Chem-Trend Limited Partnership, Howell
USA
117 CST-SurTec Inc., Middleburg Heights
USA
118 FHP-Berner USA LP, Aurora
USA
119 Freudenberg Filtration Technologies LP, Hopkinsville
USA
120 Freudenberg Household Products LP, Aurora
USA
121 Freudenberg Oil & Gas LLC, Houston
USA
122 Freudenberg Spunweb Company, Durham
USA
123 Freudenberg Texbond L.P., Macon
USA
124 Freudenberg-NOK General Partnership, Plymouth
USA
125 Helix Medical, LLC, Carpinteria
USA
126 International Seal Company, Inc., Santa Ana
USA
127 KL Texas L.P. dba SUMMIT INDUSTRIAL PRODUCTS, Tyler
USA
128 Klüber Lubrication North America LP, Londonderry
USA
129 Lakes Region Manufacturing, L.L.C., Belmont
USA
130 Merkel Freudenberg Inc., Spencer
USA
131 Vibracoustic North America LP, Plymouth
USA
Share of capital
[in %]
100.00
51.00
50.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
75.00
100.00
100.00
75.00
75.00
100.00
Sales companies, Germany
132 Access Textil Vertriebs GmbH, Weinheim
133 Corteco GmbH, Weinheim
134 Dichtomatik Vertriebsgesellschaft für technische Dichtungen mbH,
Hamburg
135 EagleBurgmann Gaskets GmbH, Wolfratshausen
136 FHP Export GmbH, Weinheim
137 Freudenberg Gygli GmbH, Weinheim
138 Freudenberg Process Seals GmbH & Co. KG, Weinheim
139 Freudenberg Schwab GmbH, Hennigsdorf
140 Freudenberg Simrit GmbH & Co. KG, Weinheim
141 Klüber Lubrication Deutschland KG, Munich
142 Seal Trade Eurasburg GmbH, Eurasburg
143 Technologiepark Weinheim KG, Weinheim
144 Vileda Gesellschaft mit beschränkter Haftung, Weinheim
Germany
Germany
100.00
100.00
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
Germany
100.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
100.00
Sales companies, other countries
145 Chem-Trend Australia Pty Ltd, Victoria
146 Freudenberg Household Products Pty. Ltd., Melbourne
147 Freudenberg Pty. Ltd., Thomastown
148 Klüber Lubrication Australia Pty. Ltd., Melbourne
149 EagleBurgmann Belgium B.V.B.A., St.-Job-in’t-Goor
150 FHP Vileda S.C.S., Verviers
151 Klüber Lubrication Belgium Netherlands S.A., Dottignies
Australia
Australia
Australia
Australia
Belgium
Belgium
Belgium
100.00
100.00
100.00
100.00
75.00
100.00
100.00
Shareholdings 127
No. Company
Country
Share of capital
[in %]
152 Freudenberg Productos del Hogar Ltda., Santiago de Chile
Chile
100.00
153 Klüber Lubrication Chile Ltda., Santiago de Chile
Chile
100.00
154 Chem-Trend (Shanghai) Trading Co. Ltd., Shanghai
China
100.00
155 EagleBurgmann Trading (Shanghai) Co. Ltd., Shanghai
China
50.00
156 Freudenberg Household Products (Suzhou) Co., Ltd., Suzhou
China
100.00
157 Freudenberg Politex Ltd., Shanghai
China
100.00
158 Freudenberg Spunweb (Shanghai) Trading Co., Ltd., Shanghai
China
60.18
159 Jump International Trading (Shanghai) Co Ltd, Shanghai
China
100.00
160 Klüber Lubrication (Shanghai) Co., Ltd., Shanghai
China
100.00
161 SurTec Chemical and Engineering (Hangzhou) Co. Ltd., Hangzhou
China
75.00
162 Vibracoustic (Shanghai) Sales and Trading Co., Ltd., Shanghai
China
100.00
163 Freudenberg Simrit A/S, i.L., Herlev
Denmark
100.00
164 Klüber Lubrication Nordic A/S, Skovlunde
Denmark
100.00
165 SurTec Scandinavia ApS, Fredericia
Denmark
51.00
166 Freudenberg Filtration Technologies Finland Oy, Naantali
Finland
100.00
167 Freudenberg Household Products Oy Ab, Helsinki
Finland
100.00
168 Freudenberg Simrit Oy, Vantaa
Finland
100.00
169 KE-Burgmann Finland Oy, Vantaa
Finland
75.00
170 Chem-Trend France S.A.R.L., Illkirch-Graffenstaden
France
100.00
171 Corteco SAS, Nantiat - La Couture
France
100.00
172 Dichtomatik S.A.S, Mâcon Loche
France
100.00
173 EagleBurgmann S.A.S. (France), Sartrouville
France
75.00
174 FHP Vileda S.A., Gennevilliers
France
100.00
175 Freudenberg Filtration Technologies SAS, Les Ulis/Courtaboeuf
France
100.00
176 Freudenberg Simrit S.A.S, Mâcon
France
100.00
177 Klüber Lubrication France S.A.S., Valence
France
100.00
178 FHP Hellas S.A., Kifisia-Athens
Greece
100.00
179 Chem-Trend (UK) LP, Halifax
United Kingdom
100.00
180 Corteco Ltd., Lutterworth
United Kingdom
100.00
181 Dichtomatik Ltd., Derby
United Kingdom
66.00
182 EagleBurgmann Industries UK LP, Warwick
United Kingdom
75.00
183 Filtration Engineering Ltd., Elland
United Kingdom
100.00
184 Freudenberg Household Products LP, Rochdale
United Kingdom
100.00
185 Freudenberg Oil & Gas UK Ltd., Aberdeen
United Kingdom
100.00
186 Freudenberg Simrit LP, Lutterworth
United Kingdom
75.00
187 KE-Burgmann UK Ltd., Congleton
United Kingdom
75.00
188 Klüber Lubrication United Kingdom Ltd., Halifax
United Kingdom
100.00
189 SurTec Chemicals UK Ltd., Birmingham
United Kingdom
51.00
190 VC UK LP, New York
United Kingdom
100.00
191 Freudenberg Textile Technologies, S.A., Guatemala City
Guatemala
100.00
192 E&J (HK) Co Ltd, Hong Kong
Hong Kong
100.00
128
No. Company
Country
Share of capital
[in %]
193 Freudenberg Household Products Ltd., Hong Kong
Hong Kong
100.00
194 Jump (Asia) Distributors Ltd, Hong Kong
Hong Kong
100.00
195 Klüber Lubrication China Ltd., Hong Kong
Hong Kong
100.00
196 TIA (HK) Co Ltd, Hong Kong
Hong Kong
100.00
197 Chem-Trend Chemicals Co. Pvt. Ltd., Bangalore
India
100.00
198 Freudenberg Filtration Technologies India Private Limited, Pune
India
100.00
199 Freudenberg Gala Household Product Pvt. Ltd., Mumbai
India
60.00
200 PT EagleBurgmann Indonesia, Bekasi, West Java Province
Indonesia
24.98
201 PT. Jump Distributors Indonesia, Jakarta
Indonesia
100.00
202 Burgmann Pars Sealing Systems Co., Teheran
Iran
75.00
203 BT-Burgmann S.p.A., Arcugnano
Italy
75.50
204 Chem-Trend Italy del Dr. Gian Franco Colori S.a.s., Milan
Italy
100.00
205 Corcos Simrit S.a.s. di Externa Italia S.r.l., Pinerolo
Italy
100.00
206 Corteco S.r.l. (a socio unico), Pinerolo
Italy
100.00
207 Dichtomatik S.a.s. di Externa Italia S.r.l., Genoa-Voltri
Italy
100.00
208 EagleBurgmann Italia S.r.l., Osnago
Italy
75.00
209 Freudenberg S.p.A., Milan
Italy
100.00
210 Klüber Lubrication Italia S.a.s. di G. Colori, Milan
Italy
100.00
211 Marelli & Berta Interfodere S.a.s. di Externa Holding S.r.l., Milan
Italy
100.00
212 Chemlease Japan K.K., Kobe
Japan
51.00
213 Chem-Trend Japan K.K., Osaka
Japan
100.00
214 Freudenberg Spunweb Japan Company, Ltd., Osaka
Japan
60.18
215 Dichtomatik Canada, Inc., Markham
Canada
100.00
216 EagleBurgmann Canada Inc., Milton, Ontario
Canada
75.00
217 Freudenberg Household Products Inc., Laval
Canada
100.00
218 Freudenberg Nonwovens Inc., London, Ontario
Canada
100.00
219 Nova Magnetics-Burgmann Ltd., Dartmouth
Canada
75.00
220 TOO Freudenberg Oil & Gas, Atyrau
Kazakhstan
100.00
221 Freudenberg Kucanski proizvodi d.o.o., Zagreb
Croatia
100.00
222 SurTec d.o.o., Split
Croatia
100.00
223 EagleBurgmann (Malaysia) SDN. BHD., Petaling Jaya
Malaysia
25.00
224 Jump (Malaysia) Distributors Sdn Bhd, Puchong
Malaysia
100.00
225 Klüber Lubrication (Malaysia) Sdn. Bhd., Kuala Lumpur
Malaysia
100.00
226 Chem-Trend Comercial, S.A. de C.V., Querétaro
Mexico
100.00
227 Dichtomatik de Mexico S.A. de C.V., Querétaro
Mexico
95.50
228 Freudenberg Productos del Hogar, S.A. de C.V., Mexico City
Mexico
100.00
229 Dichtomatik B.V., Zwolle
The Netherlands
66.60
230 EagleBurgmann Netherlands B.V., Veenendaal
The Netherlands
75.00
231 SurTec Benelux B.V., Reuver
The Netherlands
55.00
232 EagleBurgmann Norway AS, Skedsmokorset
Norway
75.00
233 Freudenberg Household Products AS, Skedsmokorset
Norway
100.00
Shareholdings 129
No. Company
Country
Share of capital
[in %]
234 Vestpak AS, Sandnes
Norway
100.00
235 Dichtomatik Handelsgesellschaft mbH, Vienna
Austria
95.00
236 EagleBurgmann Austria GmbH, Salzburg
Austria
75.00
237 SurTec Produkte und Systeme für die Oberflächenbehandlung GesmbH,
Vienna
Austria
100.00
238 EagleBurgmann Philippines, Inc., Cavite
Philippines
22.58
239 Chem-Trend Polska sp. z o.o. spólka komandytowa, Janikowo
Poland
100.00
240 EagleBurgmann Poland sp. z o.o., Warsaw
Poland
75.00
241 FHP Vileda Sp. z o.o., Warsaw
Poland
100.00
242 Freudenberg Politex Sp. z o.o., Lodz
Poland
100.00
243 Freudenberg Simrit Polska Sp. z o.o., Warsaw
Poland
95.00
244 Freudenberg Vilene Sp. z o.o., Lodz
Poland
100.00
245 Klüber Lubrication Polska Sp. z o.o., Poznan
Poland
100.00
246 SurTec Polska Sp. z o.o., Wroclaw
Poland
70.00
247 EagleBurgmann RO S.R.L., Bucharest
Romania
75.00
248 Freudenberg Household Products Vileda Societate in Comandita,
Bucharest
Romania
100.00
249 SurTec Romania s.r.l., Brasov
Romania
55.00
250 EagleBurgmann OOO, Zavolzhie
Russia
75.00
251 Freudenberg Household Products Eastern Europe OOO, St. Petersburg Russia
70.00
252 Freudenberg Vileda Eastern Europe OOO, Moscow
Russia
100.00
253 Klüber Lubrication OOO, Moscow
Russia
100.00
254 OOO Freudenberg Simrit, Moscow
Russia
100.00
255 OOO SurTec, Moscow
Russia
100.00
256 EagleBurgmann Saudi Arabia Ltd., Khobar
Saudi Arabia
51.00
257 Dichtomatik A.B., Landskrona
Sweden
85.00
258 EagleBurgmann Sweden AB, Norrköping
Sweden
75.00
259 Freudenberg Simrit A.B., Stockholm
Sweden
100.00
260 EagleBurgmann (Switzerland) AG, Höri
Switzerland
75.00
261 Freudenberg Gygli AG, Zug
Switzerland
100.00
262 Freudenberg Simrit AG, Zurich
Switzerland
100.00
263 Klüber Lubrication AG (Schweiz), Zurich
Switzerland
100.00
264 Schwab Schwingungstechnik AG, Adliswil
Switzerland
100.00
265 Freudenberg proizvodi za domacinstvo d.o.o., Belgrade
Serbia
100.00
266 Chem-Trend Singapore Pte. Ltd., Singapore
Singapore
100.00
267 EagleBurgmann KE Pte. Ltd., Singapore
Singapore
75.00
268 EagleBurgmann Singapore Pte. Ltd., Singapore
Singapore
25.00
269 Jump Singapore Distributors (Pte) Ltd, Singapore
Singapore
100.00
270 Klüber Lubrication South East Asia Pte. Ltd., Singapore
Singapore
100.00
271 Freudenberg Simrit spol. s.r.o., Velky Krtis
Slovakia
100.00
272 SurTec SK s.r.o., Vráble
Slovakia
50.00
130
No. Company
Country
Share of capital
[in %]
273 Freudenberg Gospodinjski Proizvodi d.o.o., Maribor
Slovenia
100.00
274 SurTec Adria d.o.o., Radovljica
Slovenia
60.00
275 EagleBurgmann Ibérica S.A., Madrid
Spain
75.00
276 Vileda Ibérica S.A., S.en C., Parets del Vallés
Spain
100.00
277 Freudenberg Filtration Technologies (Pty) Ltd., Cape Town
South Africa
100.00
278 Klüber Lubrication (Pty.) Ltd., Randhart
South Africa
100.00
279 EagleBurgmann Korea Co., Ltd., Gyeonggi-Do
South Korea
25.00
280 SurTec Korea Co., Ltd., GyeongNam
South Korea
100.00
281 Jump (Taiwan) Distributors Co Ltd, Taipei
Taiwan
100.00
282 Chem-Trend Trading (Thailand) Co. Ltd., Bangkok
Thailand
100.00
283 Jump Distributors (Thailand) Co Ltd, Nonthabur
Thailand
65.00
284 Klüber Lubrication (Thailand) Co., Ltd., Bangkok
Thailand
100.00
285 Lucky Gecko Co Ltd, Nonthabur
Thailand
100.00
286 SurTec Asia Pacific Co., Ltd., Bangkok
Thailand
100.00
287 EagleBurgmann Czech s.r.o., Prague
Czech Republic
75.00
288 Freudenberg Potreby pro domácnost, k.s., Prague
Czech Republic
100.00
289 Freudenberg Simrit, spol. s.r.o., i.L., Prague
Czech Republic
100.00
290 Freudenberg Vilene s.r.o., Prostejov
Czech Republic
100.00
291 Klüber Lubrication CZ, s.r.o., Brno
Czech Republic
100.00
292 SurTec CR s.r.o., Vrane n/Vltavou
Czech Republic
50.00
293 EagleBurgmann Endüstriyel Sizdirmazlik Sanayi ve Ticaret Ltd.,
Istanbul
Turkey
75.00
294 Freudenberg Household Products Evici Kullanim Araclari
Sanayi ve Ticaret A.S., Istanbul
Turkey
100.00
295 Freudenberg Vilene Tela Sanayi ve Ticaret A.S., Istanbul
Turkey
100.00
296 Dichtomatik Kft., Budapest
Hungary
80.00
297 EagleBurgmann Hungaria Kft., Budapest
Hungary
75.00
298 Freudenberg Háztartási Cikkek Kereskedelmi BT, Budapest
Hungary
100.00
299 Freudenberg Simrit Kft., i.L., Budapest
Hungary
100.00
300 EagleBurgmann Industries LP, Houston
USA
75.00
301 EagleBurgmann KE, Inc., Hebron
USA
75.00
302 Freudenberg Nonwovens Limited Partnership, Durham
USA
100.00
303 Ishino Gasket North America L.L.C., Plymouth
USA
37.50
304 EagleBurgmann Venezuela, C.A., Caracas
Venezuela
41.25
305 EagleBurgmann Middle East FZE, Dubai
United Arab
Emirates
60.00
306 EagleBurgmann Vietnam Company Limited, Ho Chi Minh City
Vietnam
25.00
307 SurTec Viet Nam Co., Ltd., Ho Chi Minh City
Vietnam
51.00
Administration and other companies, Germany
308 2. Freudenberg Beteiligungs-GmbH, Weinheim
Germany
100.00
Shareholdings 131
No. Company
Country
309 Beteiligungsgesellschaft Carl Freudenberg mbH, Weinheim
Germany
310 Burgmann Industries Holding GmbH, Wolfratshausen
Germany
311 Burgmann International GmbH, Wolfratshausen
Germany
312 Carl Freudenberg KG, Weinheim
Germany
313 CT Beteiligungs-GmbH, Munich
Germany
314 Dichtomatik Holding GmbH, Weinheim
Germany
315 DS Beteiligungs-GmbH, Weinheim
Germany
316 DS Holding-GmbH, Weinheim
Germany
317 DS Verwaltungs-GmbH, Weinheim
Germany
318 Eagle Euroseals GmbH, Weinheim
Germany
319 EagleBurgmann Germany Verwaltungs-GmbH, Wolfratshausen
Germany
320 Externa Handels- und Beteiligungsgesellschaft mit beschränkter
Haftung, Heddesheim
Germany
321 FCS-Munich GmbH, Weinheim
Germany
322 FFT Beteiligungs-GmbH, Weinheim
Germany
323 FHP Holding GmbH, Weinheim
Germany
324 FIT Service GmbH, Weinheim
Germany
325 Fremecs GmbH & Co. KG, Weinheim
Germany
326 Fremecs Holding GmbH, Weinheim
Germany
327 Freudenberg Anlagen- und Werkzeugtechnik GmbH, Laudenbach
Germany
328 Freudenberg Beteiligungs-AG, Weinheim
Germany
329 Freudenberg Chemical Specialities KG, Munich
Germany
330 Freudenberg Dichtungs- und Schwingungstechnik GmbH, Berlin
Germany
331 Freudenberg FCCT KG, Weinheim
Germany
332 Freudenberg Finance GmbH, Weinheim
Germany
333 Freudenberg Forschungsdienste KG, Weinheim
Germany
334 Freudenberg Handels- und Beteiligungs-GmbH, Weinheim
Germany
335 Freudenberg Haushaltsprodukte KG, Weinheim
Germany
336 Freudenberg Haushaltsprodukte Verwaltungs-GmbH, Weinheim
Germany
337 Freudenberg Immobilien Management GmbH, Weinheim
Germany
338 Freudenberg IT Information Services KG, Weinheim
Germany
339 Freudenberg IT KG, Weinheim
Germany
340 Freudenberg IT Solution Consulting KG, Weinheim
Germany
341 Freudenberg Kleve GmbH, Weinheim
Germany
342 Freudenberg Mechatronics Beteiligungs-GmbH, Weinheim
Germany
343 Freudenberg Mechatronics GmbH & Co. KG, Weinheim
Germany
344 Freudenberg Mektec Beteiligungs-GmbH, Weinheim
Germany
345 Freudenberg New Technologies KG, Weinheim
Germany
346 Freudenberg Oil & Gas GmbH, Weinheim
Germany
347 Freudenberg Politex GmbH, Weinheim
Germany
348 Freudenberg Process Consulting GmbH, Weinheim
Germany
Share of capital
[in %]
100.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
132
No. Company
Country
349 Freudenberg Rückversicherung AG, Weinheim
Germany
350 Freudenberg Service KG, Weinheim
Germany
351 Freudenberg Venture Capital GmbH, Weinheim
Germany
352 Freudenberg Verpflegungsdienste KG, Weinheim
Germany
353 Freudenberg Versicherungsservice GmbH, Weinheim
Germany
354 Freudenberg Wohnbauhilfe GmbH, Weinheim
Germany
355 FV Beteiligungs-GmbH, Weinheim
Germany
356 FV Holding GmbH, Weinheim
Germany
357 FV Logistik KG, Weinheim
Germany
358 FV Service KG, Kaiserslautern
Germany
359 FV Verwaltungs-KG, Weinheim
Germany
360 Klüber Lubrication GmbH, Weinheim
Germany
361 Schwingungstechnik Industrie Verwaltungs-GmbH, Velten
Germany
362 SurTec International GmbH, Bensheim
Germany
363 Vibracoustic Asia Holding GmbH, Weinheim
Germany
364 Vibracoustic Germany Holding GmbH, Weinheim
Germany
365 Vibracoustic Holding GmbH, Weinheim
Germany
366 WOR Pensionsgesellschaft mbH, Wolfratshausen
Germany
Administration and other companies, other countries
367 Freudenberg Produtos do Lar Ltda., São Paulo
368 EagleBurgmann (Shanghai) Investment Management Co. Ltd.,
Shanghai
369 Freudenberg IT (Suzhou) Co., Ltd., Suzhou
370 Freudenberg Management (Shanghai) Co. Ltd., Shanghai
371 Freudenberg Real Estate (Yantai) Co. Ltd., Yantai
372 Chem-Trend A/S, Copenhagen
373 EBI Atlantic A/S, Vejen
374 EBI Middle-East A/S, Vejen
375 SPECI-TEX ApS, Vejen
376 Freudenberg Immobilier SAS, Chamborêt
377 Alantechnologies Ltd., Birmingham
378 Chem-Trend (UK) Ltd., Halifax
379 Chem-Trend China Investments Ltd., Halifax
380 EagleBurgmann Industries UK Ltd., Warwick
381 FCS Interim UK Ltd., Halifax
382 Filtamark Ltd., Elland
383 Freudenberg Limited, Littleborough
384 Freudenberg Technical Products Ltd., North Shields
385 Freudenberg Vileda Ltd., Rochdale
386 VC UK Ltd., New York
387 Freudenberg Trading (Hong Kong) Ltd., Hong Kong
Share of capital
[in %]
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
75.00
Brazil
100.00
China
China
China
China
Denmark
Denmark
Denmark
Denmark
France
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
United Kingdom
Hong Kong
50.00
100.00
100.00
100.00
100.00
75.00
60.00
75.00
100.00
51.00
100.00
100.00
75.00
100.00
100.00
100.00
75.00
100.00
100.00
100.00
Shareholdings 133
No. Company
Country
Share of capital
[in %]
388 Corfina Industriale S.a.s. di Externa Italia S.r.l., Pinerolo
Italy
100.00
389 Externa Holding S.r.l., Milan
Italy
100.00
390 Externa Italia S.r.l., Pinerolo
Italy
100.00
391 Freudenberg Politex S.r.l., Novedrate
Italy
100.00
392 Freudenberg Austria GmbH, Kufstein
Austria
100.00
393 Freudenberg Schuh GmbH, Marchtrenk
Austria
100.00
394 Chem-Trend Polska Sp. z o.o., Kobylnica
Poland
100.00
395 FIM Polska Sp. z o.o., Sroda Slaska
Poland
100.00
396 Freudenberg Household Products SRL, Bucharest
Romania
100.00
397 Freudenberg Management Imobiliar SRL, Bucharest
Romania
100.00
398 Freudenberg Nonwovens Romania S.R.L., Brasov
Romania
100.00
399 EBI Asia Pacific Pte. Ltd., Singapore
Singapore
25.00
400 EBI Asia Pte. Ltd., Singapore
Singapore
50.00
401 Freudenberg IT Singapore Pte. Ltd., Singapore
Singapore
100.00
402 Freudenberg Immobilienmanagement Slovakia, s.r.o, Potvorice
Slovakia
100.00
403 Freudenberg Espana S.A., Barcelona
Spain
100.00
404 Freudenberg Iberica S.A., Barcelona
Spain
100.00
405 Vileda Ibérica S.A., Barcelona
Spain
100.00
406 Arnot Burgmann (Pty) Ltd., Edenvale
South Africa
75.00
407 TPE správni s.r.o., Opatovice nad Labem
Czech Republic
100.00
408 Freudenberg IM Hungária Kft., Budapest
Hungary
100.00
409 Freudenberg IT Hungary Kft., Budapest
Hungary
100.00
410 Chem-Trend Holding LP, Wilmington
USA
100.00
411 Dichtomatik Americas, LP, Shakopee
USA
100.00
412 EagleBurgmann Industries Inc., Houston
USA
75.00
413 FCS Holding Inc., Wilmington
USA
100.00
414 FHP-Berner USA Inc., Wilmington
USA
50.00
415 Freudenberg Household Products Inc., Aurora
USA
100.00
416 Freudenberg IT LP, Durham
USA
100.00
417 Freudenberg North America Limited Partnership, Manchester
USA
100.00
418 Freudenberg Real Estate L.P., Wilmington
USA
100.00
419 Freudenberg Texbond Inc., Delaware
USA
100.00
420 Freudenberg U.S.A. Holdings, Inc., Manchester
USA
100.00
421 Freudenberg-NOK Holdings, Inc., Manchester
USA
75.00
422 Intpacor Inc., Manchester
USA
100.00
423 Klüber Lubrication North America Inc., Londonderry
USA
100.00
424 Lutrabond Company LP, Durham
USA
100.00
425 Lutrabond Corporation, Wilmington
USA
100.00
426 Lutradur Corporation, Wilmington
USA
100.00
427 Lutradur LP, Durham
USA
100.00
428 Pellon Corporation, Durham
USA
100.00
429 Upper Bristol Ramp, LLC, Wilmington
USA
75.00
134
No. Company
Country
II. Joint ventures consolidated on a pro-rata basis
Germany
430 Freudenberg NOK Mechatronics GmbH & Co. KG, Weinheim
Germany
Share of capital
[in %]
50.00
Other countries
431 Freudenberg & Vilene Nonwovens (Suzhou) Co. Ltd., Suzhou1)China
50.00
432 Freudenberg & Vilene Int. Ltd., Hong Kong2)
Hong Kong
50.00
433 Sigma Vibracoustic (India) PVT. LTD., Mohali
India
50.00
434 VistaMed Ltd., Carrick-on-Shannon
Ireland
50.00
435 Corfina s.r.l., Pinerolo
Italy
50.00
436 NOK-Freudenberg Asia Holding Co. Pte. Ltd., Singapore3) Singapore50.00
437 Korea Filtration Technologies Co., Ltd., Seoul
South Korea
50.00
438 Korea Vilene Co., Ltd., Pyungtaek
South Korea
50.00
439 Freudenberg & Vilene Nonwovens (Taiwan) Co. Ltd., Yang-Mei,
Tao-Yuan
Taiwan
50.00
440 Freudenberg & Vilene Filter (Thailand) Co. Ltd., Chonburi
Thailand
50.00
441 Beltan Vibracoustic Titresim Elemanlari Sanayi ve Ticaret A.S., Bursa Turkey
50.00
442 Freudenberg NOK Mechatronics Hungary Bt., Pécel
Hungary
50.00
III. Associated companies (valued at equity)
Other countries
443 Bicomfiber S.A., Buenos Aires
Argentina
24.00
444 OÜ Merinvest, Kuressaare-Mullutu
Estonia
20.00
445 Euro China Socks Ltd, Hong Kong
Hong Kong
29.00
446 Japan Vilene Company Ltd., Tokyo
Japan
27.68
447 NOK Corporation, Tokyo
Japan
25.10
448 NOK Klüber Co., Ltd., Tokyo
Japan
49.00
449 SurTec Mexico S.A. de C.V., Iztapalapa
Mexico
38.26
450 ST Ibérica Lda., Albergaria-a-velha
Portugal
49.00
451 Winpower International Ltd., Apia
Samoa
25.10
452 Klüber Lubrication Korea Ltd., Seoul
South Korea
48.00
453 Beta Seals Sizdirmazlik Elemanlari Sanayi ve Ticaret A.S., Bursa
Turkey
50.00
454 SurTec Middle East (L.L.C.), Sharjah
United Arab
Emirates
35.00
1)
Consolidated financial statements including
Freudenberg & Vilene Filter (Changchun) Co., Ltd., Changchun, China
2)
Freudenberg & Vilene Interlinings (Nantong) Co. Ltd., Nantong, China
Freudenberg & Vilene International (Shanghai) Trading Co., Ltd.,
Shanghai, China
XETEX Trading Limited, Hong Kong, Hong Kong
Attrix Company Limited, Kowloon, Hong Kong
Freudenberg & Vilene International Lanka (Private) Limited, Colombo,
Sri Lanka
3)
Changchun NOK-Freudenberg Oilseal Co., Ltd., Changchun, China
Wuxi NOK-Freudenberg Oilseal Co., Ltd., Wuxi, China
Sigma Freudenberg NOK PVT. Ltd., New Delhi, India
NOK-Freudenberg Hong Kong Ltd., Kowloon, Hong Kong
Merkel NOK-Freudenberg Co. Ltd., Taicang, China
NOK-Freudenberg Group Sales (China) Co., Ltd., Shanghai, China
NOK-Freudenberg Group Trading (China) Co., Ltd., Shanghai, China
Corteco China Co. Ltd., Guangzhou, China
Independent Auditor’s Report 135
Independent Auditor’s Report
We have issued the following opinion on the Consolidated Financial Statements and the Group Management
Report:
“We have audited the Consolidated Financial Statements prepared by the Freudenberg & Co. Kommandit
gesellschaft, Weinheim, comprising the Consolidated Statement of Financial Position, the Consolidated Income
Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Cash Flows,
the Consolidated Statement of Changes in Equity, and the Notes to the Consolidated Financial Statements,
together with the Group Management Report for the fiscal year from January 1 to December 31, 2011. The
preparation of the Consolidated Financial Statements and the Group Management Report in accordance with
IFRSs as adopted by the EU, and the additional requirements of German commercial law pursuant to Sec. 315a (1)
HGB [“Handelsgesetzbuch”: “German Commercial Code”] are the responsibility of the parent company’s
management. Our responsibility is to express an opinion on the Consolidated Financial Statements and on the
Group Management Report based on our audit.
We conducted our audit of the Consolidated Financial Statements in accordance with Sec. 317 HGB and German
generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschafts
prüfer [Institute of Public Auditors in Germany] (IDW). Those standards require that we plan and perform the
audit such that misstatements materially affecting the presentation of the net assets, financial position and results
of operations in the Consolidated Financial Statements in accordance with the applicable financial reporting
framework and in the Group Management Report are detected with reasonable assurance. Knowledge of the
business activities and the economic and legal environment of the Group and expectations as to possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accountingrelated internal control system and the evidence supporting the disclosures in the Consolidated Financial Statements and the Group Management Report are examined primarily on a test basis within the framework of the
audit. The audit includes assessing the annual financial statements of those entities included in consolidation, the
determination of entities to be included in consolidation, the accounting and consolidation principles used and
significant estimates made by management, as well as evaluating the overall presentation of the Consolidated
Financial Statements and the Group Management Report. We believe that our audit provides a reasonable
basis for our opinion.
Our audit has not led to any reservations.
In our opinion, based on the findings of our audit, the Consolidated Financial Statements comply with IFRSs as
adopted by the EU, the additional requirements of German commercial law pursuant to Sec. 315a (1) HGB and
give a true and fair view of the net assets, financial position and results of operations of the Group in accordance
with these requirements. The Group Management Report is consistent with the Consolidated Financial Statements
and as a whole provides a suitable view of the Group’s position and suitably presents the opportunities and risks
of future development.”
Mannheim, March 29, 2012
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
Prof. Dr. Wollmert Grathwol
WirtschaftsprüferWirtschaftsprüfer
[German Public Auditor] [German Public Auditor]
2011 Annual Report
Freudenberg Group
PUBLISHED BY:
Freudenberg & Co.
www.freudenberg.com
DESIGN:
PHOTOS:
Freudenberg Group
avenue images
PRODUCTION:
www.freudenberg.com
PROJECT TEAM:
Andreas Baldauf
Katrin Jacobi
Frank Reuther
Sabrina Luckart
Anja Killian
Martina Lorenz
2011 Annual Report
Freudenberg Group
PUBLISHED BY:
Freudenberg & Co.
www.freudenberg.com
DESIGN:
PHOTOS:
Freudenberg Group
avenue images
PRODUCTION:
www.freudenberg.com
PROJECT TEAM:
Andreas Baldauf
Katrin Jacobi
Frank Reuther
Sabrina Luckart
Anja Killian
Martina Lorenz

Annual Report 2011

Transcription

Similar documents

GESCHäFTSBERICHT 2013 FREUDENBERG GRUPPE

History brochure PDF 1,3 MB